Contracts
In South Dakota, which statement about 'earnest money' is TRUE?
AEarnest money is always non-refundable once submitted
BEarnest money may be refundable if a valid contingency is not met and the buyer properly exercises their right to terminate✓ Correct
CEarnest money must equal at least 3% of the purchase price
DEarnest money is paid directly to the seller at the time of offer
Explanation
Whether earnest money is refundable depends on the circumstances of termination. If the buyer terminates under a valid contingency (financing, inspection, appraisal), earnest money is typically refundable.
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