Contracts
A seller receives an offer with no earnest money deposit. Is this offer valid in Georgia?
AA. No — all Georgia contracts require a minimum $1,000 earnest money deposit
BB. Yes — earnest money is not legally required for a contract to be valid✓ Correct
CC. Only if the buyer is a cash buyer
DD. Only if the listing broker approves the lack of deposit
Explanation
Earnest money is not legally required for a contract to be valid. A contract requires offer, acceptance, consideration (which can be the mutual promises themselves), and legal purpose.
Related Georgia Contracts Questions
- Under the GAR contract's 'New Loan' contingency, if the buyer cannot obtain financing at specified terms, they may:
- A Georgia buyer who is three days past the contract's inspection contingency deadline requests an extension. The seller:
- A contingency that is 'personal to the buyer' in a real estate contract means:
- A buyer who discovers a previously unknown major defect after closing but before moving in may have which remedy?
- When a Georgia real estate contract's closing date passes without closing due to circumstances beyond either party's control (like a natural disaster), the contract may be:
- Under Georgia contract law, 'impossibility of performance' occurs when:
- A 'novation' in Georgia replaces:
- An 'arm's length transaction' in real estate means:
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →