Contracts
In a real estate purchase contract, earnest money is best described as:
AThe commission paid to the listing broker
BA deposit demonstrating the buyer's good faith intent to purchase✓ Correct
CThe down payment required by the lender
DThe fee paid for a property inspection
Explanation
Earnest money is a good faith deposit made by the buyer to demonstrate serious intent to purchase. It is typically held in escrow and applied toward the purchase price at closing.
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