Contracts
In North Dakota real estate, 'earnest money' serves the purpose of:
APaying the agent's commission
BDemonstrating the buyer's good faith and providing the seller with consideration or remedy if the buyer breaches✓ Correct
CFunding the buyer's down payment at closing
DCovering closing costs regardless of outcome
Explanation
Earnest money demonstrates the buyer's serious intent (good faith) and provides the seller with a remedy if the buyer defaults. If the buyer defaults without a valid contingency, the seller may retain the earnest money as liquidated damages per the contract terms.
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