Contracts
In Louisiana, 'earnest money' in a real estate contract is best described as:
AThe broker's commission deposited at signing
BA deposit made by the buyer to demonstrate good faith and secure the contract✓ Correct
CThe seller's down payment to the lender
DFunds placed in escrow by the notary
Explanation
Earnest money is a deposit made by the buyer to demonstrate good faith and secure the purchase contract. It is typically applied toward the purchase price at closing.
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