Contracts
The 'earnest money deposit' in a Massachusetts real estate transaction is:
AA non-refundable fee paid to the agent
BA good-faith deposit made by the buyer to show serious intent, held in escrow until closing✓ Correct
CAn advance payment of the first mortgage installment
DA fee paid to the listing broker upon signing the listing agreement
Explanation
An earnest money deposit is a good-faith payment made by the buyer at the time of the offer or P&S signing. It is held in escrow and applied to the purchase price at closing or returned/forfeited based on contract terms.
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