Contracts
In Maine, an 'earnest money deposit' serves what primary purpose in a real estate contract?
ATo pay for the home inspection
BTo demonstrate the buyer's serious intent and create consideration for the contract✓ Correct
CTo cover the closing costs
DTo compensate the agent if the buyer defaults
Explanation
Earnest money demonstrates the buyer's good faith and serious intent to purchase. It serves as partial consideration for the contract and may be forfeited if the buyer defaults without a valid contingency.
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