Contracts
In Maine, an 'earnest money' deposit in a real estate contract serves as:
AThe seller's commission
BEvidence of the buyer's good faith and commitment to the purchase✓ Correct
CA guarantee of final closing
DThe down payment on the mortgage
Explanation
Earnest money (good faith deposit) demonstrates the buyer's serious intent to purchase. It is applied toward the purchase price at closing and may be forfeited if the buyer defaults without a valid contingency.
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