Contracts
In South Carolina, what is 'earnest money' and what purpose does it serve?
AThe agent's commission paid upfront
BA good-faith deposit made by the buyer to demonstrate serious intent to purchase, which may be forfeited if the buyer defaults✓ Correct
CThe seller's deposit with the title company
DA fee paid to SCREC when a contract is filed
Explanation
Earnest money is a deposit paid by the buyer to show good faith and commitment to the purchase. It is held in escrow and typically applied to the purchase price at closing.
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