Contracts (alternative)
In Maryland, earnest money forfeited by a defaulting buyer typically goes to:
AThe buyer's agent
BThe seller (as agreed in the contract, usually as liquidated damages)✓ Correct
CMREC's Guaranty Fund
DSplit equally between both agents
Explanation
Per the standard Maryland contract's liquidated damages clause, forfeited earnest money goes to the seller as compensation for the buyer's default — not to the agents or MREC.
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