Contracts
The 'earnest money deposit' in a GAR contract serves the primary purpose of:
AA. Paying for the property's closing costs
BB. Demonstrating the buyer's good faith and providing the seller some security✓ Correct
CC. Establishing the down payment amount
DD. Compensating the real estate agents
Explanation
Earnest money demonstrates the buyer's seriousness and good faith in entering the contract. It provides the seller some security in case the buyer defaults.
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