Minnesota License Law
Under Minnesota real estate law, 'earnest money' is best characterized as:
AA non-refundable fee paid to the listing broker
BA good faith deposit showing the buyer's intent to purchase, held in trust✓ Correct
CThe first mortgage payment paid in advance
DA fee paid directly to the seller at contract signing
Explanation
Earnest money is a good faith deposit from the buyer that demonstrates their serious intent to purchase. In Minnesota, it is held in a trust account by the broker or closing agent.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
State-Specific Concepts
Trust Account Rules
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