Contracts
An 'earnest money' deposit in a NJ real estate transaction demonstrates the buyer's:
ALegal obligation to close
BGood faith and intent to complete the purchase✓ Correct
CProof of mortgage approval
DWaiver of the inspection contingency
Explanation
Earnest money (good faith deposit) demonstrates the buyer's serious intent to purchase. While it is not itself legally required for a valid contract (consideration is), it serves as security for the seller if the buyer defaults.
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