Contracts
In a Hawaii real estate contract, an 'earnest money deposit' serves primarily as:
AThe full down payment
BEvidence of the buyer's good faith and part of the purchase price✓ Correct
CPayment directly to the listing agent
DA non-refundable fee to the seller
Explanation
Earnest money demonstrates the buyer's good faith intent to purchase. It is typically credited toward the purchase price at closing and is held in trust (usually by escrow or the brokerage).
Related Hawaii Contracts Questions
- In Hawaii, what is the 'risk of loss' rule for real estate under contract?
- A Hawaii seller refuses to close after all contingencies are removed. The buyer's BEST remedy is:
- What is a 'right of first refusal' clause in a Hawaii real estate contract?
- Which element is NOT required for a valid Hawaii real estate purchase contract?
- What is a 'force majeure' clause in a Hawaii real estate contract?
- In Hawaii, a property owner who grants a 6-month option to buy in exchange for $5,000 from a potential buyer must:
- Which element is NOT required for a valid real estate contract in Hawaii?
- A counteroffer by the seller in response to a buyer's offer:
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →