Contracts
In Montana, 'earnest money' in a real estate transaction serves primarily as:
AThe down payment on the property
BA good faith deposit demonstrating the buyer's intent to proceed and providing the seller some protection if the buyer defaults✓ Correct
CPayment for the home inspection
DThe first month's mortgage payment
Explanation
Earnest money is a good faith deposit from the buyer that demonstrates serious intent. If the buyer defaults, the seller may be entitled to retain the earnest money.
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