Contracts
An earnest money deposit of $5,000 is held by the listing broker in Indiana. At closing, this money:
AGoes directly to the seller
BIs applied as a credit toward the buyer's purchase price at closing✓ Correct
CIs returned to the buyer
DIs split between broker and seller
Explanation
Earnest money is credited to the buyer at closing — it reduces the buyer's out-of-pocket cash needed at closing since it was already paid and represents part of the purchase price.
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