Contracts
In Indiana, an 'earnest money' deposit in a real estate transaction is:
ARequired by law to be at least 1% of the purchase price
BA good-faith deposit made by the buyer to demonstrate serious intent to purchase✓ Correct
CNon-refundable under all circumstances
DPaid directly to the seller upon contract execution
Explanation
Earnest money is a good-faith deposit made by the buyer to demonstrate their serious intention to complete the purchase. While not legally required, it is standard practice. It is refundable under certain conditions (contingency failures) and held in escrow until closing.
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