Contracts

Under the North Carolina Offer to Purchase, the earnest money deposit (EMD) is:

ANon-refundable under all circumstances
BRefundable to the buyer if they terminate during the due diligence period✓ Correct
CPaid directly to the listing broker
DRequired to be at least 1% of the purchase price

Explanation

The earnest money deposit is refundable to the buyer if they terminate the contract during the due diligence period. After the due diligence deadline, the EMD is generally non-refundable if the buyer defaults.

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