Contracts (alternative)
In Maryland, 'earnest money' serves primarily as:
AThe broker's commission advance
BEvidence of the buyer's good faith and financial ability to perform✓ Correct
CA government-required deposit
DPayment of the buyer's closing costs
Explanation
Earnest money demonstrates the buyer's good faith intent to complete the purchase. It is applied toward the purchase price at settlement and may be forfeited if the buyer defaults without justification.
Related Maryland Contracts (alternative) Questions
- In Maryland, a contract 'subject to the sale of the buyer's home' is an example of a:
- A Maryland purchase agreement that includes a survey contingency allows the buyer to review the property survey and:
- In Maryland, the 'merger doctrine' in real estate contracts states that:
- A Maryland buyer's agent who submits an offer electronically has satisfied the contract's requirement for a written agreement if:
- In Maryland, an option contract typically expires if the optionee (buyer):
- In Maryland, a seller who accepts two offers on the same property simultaneously has:
- A Maryland buyer who cannot attend the settlement may:
- In Maryland, the phrase 'time is of the essence' in a purchase contract means that:
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