Contracts
Earnest money in a Kentucky real estate contract is considered:
APayment of the commission
BEvidence of the buyer's good faith and part of the consideration✓ Correct
CA nonrefundable deposit in all circumstances
DProperty of the listing broker
Explanation
Earnest money demonstrates the buyer's good faith and is part of the consideration for the contract. Whether it is refundable depends on the circumstances and contract terms.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
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