Contracts
In Ohio, an 'earnest money deposit' in a real estate transaction is NOT required by law but serves to:
ACreate a binding contract by itself
BDemonstrate the buyer's good faith and commitment to the transaction✓ Correct
CGuarantee the buyer's financing will be approved
DPay the listing agent's initial costs
Explanation
While not legally required to form a contract, earnest money demonstrates the buyer's serious intent and good faith. It also provides the seller with a remedy (liquidated damages) if the buyer defaults.
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