Contracts
Under Ohio law, which of the following is TRUE about earnest money?
AIt must equal exactly 10% of the purchase price
BIt is held in trust and applied toward the purchase price at closing✓ Correct
CIt is paid directly to the seller at time of contract
DIt is nonrefundable in all circumstances
Explanation
Earnest money is a good-faith deposit held in a broker's trust account. It is applied toward the buyer's down payment or closing costs at settlement.
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