Contracts
In North Dakota, 'earnest money' in a real estate transaction primarily serves as:
AThe broker's commission
BEvidence of the buyer's good faith and partial performance, applied toward the purchase price at closing✓ Correct
CPayment for the home inspection
DThe title insurance premium
Explanation
Earnest money demonstrates the buyer's good faith and commitment to the transaction. It is held in trust and applied toward the purchase price at closing, or may be subject to forfeiture if the buyer defaults.
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