Contracts
In Louisiana real estate, 'earnest money' is best described as:
AA non-refundable down payment required by all lenders
BA deposit given by the buyer to demonstrate good faith, typically held in escrow by the broker✓ Correct
CThe first month's rent paid in advance
DA fee paid to the listing broker upon signing the listing agreement
Explanation
Earnest money (good faith deposit) is a sum deposited by the buyer with the listing broker to demonstrate their serious intent to purchase. It is held in a trust/escrow account and typically applied to the purchase price at closing, or returned to the buyer if a contingency is not met.
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