Real Estate Math
A Texas buyer makes an offer of $285,000 with $5,000 earnest money and a $250 option fee for a 10-day option period. If the buyer terminates on day 7, they receive back:
A$5,250
B$5,000 (earnest money only)✓ Correct
C$250 (option fee only)
DNothing
Explanation
When a buyer terminates within the option period, the earnest money ($5,000) is returned. The option fee ($250) was paid to the seller as consideration for the option right and is retained by the seller.
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