Contracts
Earnest money in a Nebraska real estate transaction is:
ARequired by law to be at least 1% of the purchase price
BA deposit showing the buyer's good faith; amount is negotiable✓ Correct
CNon-refundable regardless of contingencies
DPaid directly to the listing agent
Explanation
Earnest money demonstrates the buyer's good faith and is negotiable in amount. It is typically held in escrow and may be refundable depending on contingencies in the contract.
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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.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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