Contracts
In Indiana, the earnest money in a successful real estate transaction is:
AKept by the listing broker as partial commission
BApplied as a credit toward the buyer's purchase price at closing✓ Correct
CReturned to the buyer at closing
DKept in trust until the deed is recorded
Explanation
When the transaction closes successfully, earnest money is applied as a credit toward the buyer's closing costs and/or down payment — reducing the cash the buyer needs to bring to closing.
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