Contracts
When does earnest money in an Indiana residential transaction become 'at risk' of being forfeited?
AImmediately upon signing
BAfter all contingencies have been removed or expired, leaving only the buyer's commitment to close✓ Correct
COnly after the inspection is complete
DOnly at closing
Explanation
Earnest money is 'at risk' once all contingencies have been satisfied or waived — at that point, the buyer has no remaining escape routes other than defaulting, which would typically result in forfeiture of the earnest money.
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