Contracts

An earnest money deposit in a Kansas purchase agreement is best described as:

AThe down payment for the mortgage
BA good-faith deposit demonstrating the buyer's intent✓ Correct
CThe broker's commission held in trust
DA non-refundable payment to the seller

Explanation

Earnest money is a good-faith deposit made by the buyer demonstrating serious intent to purchase. It is held in escrow and applied toward the purchase price at closing.

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