Contracts
In Oregon, 'earnest money' is typically applied to which of the following at closing?
AThe listing broker's commission
BThe buyer's down payment and/or closing costs✓ Correct
CThe seller's closing costs
DThe escrow company's fee
Explanation
Earnest money is credited to the buyer at closing and applied toward the buyer's down payment and/or closing costs. It is part of the buyer's funds needed to close the transaction — it reduces the additional cash the buyer must bring to closing.
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