Contracts
In Iowa, an earnest money deposit made with a purchase offer is best described as:
AThe broker's commission
BEvidence of the buyer's good faith and part of the purchase price✓ Correct
CA non-refundable reservation fee
DA state-mandated payment to the IREC
Explanation
Earnest money demonstrates the buyer's good faith intent to purchase. It is applied toward the purchase price at closing. Whether it is refundable depends on contingency provisions in the purchase agreement.
Related Iowa Contracts Questions
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