Contracts
Earnest money in a Mississippi real estate transaction is best described as:
AA nonrefundable down payment
BA deposit that demonstrates the buyer's good faith and is applied toward the purchase price✓ Correct
CA fee paid to MREC
DMoney held by the buyer's attorney
Explanation
Earnest money is a good-faith deposit made by the buyer that is typically held in escrow and applied toward the purchase price at closing. Its disposition upon default is governed by the contract terms.
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