Contracts
In Michigan, 'earnest money' in a real estate purchase agreement serves as:
AThe buyer's down payment to the seller
BA good faith deposit demonstrating the buyer's intent to complete the purchase✓ Correct
CA fee paid to the listing agent
DPayment for the title search
Explanation
Earnest money is a good faith deposit that signals the buyer's serious intent to complete the purchase. It is held in escrow and typically applied to the buyer's closing costs or down payment at closing.
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