Contracts
An earnest money deposit in Utah is considered:
AA non-refundable deposit in all circumstances
BA good-faith deposit that may be refundable depending on the contract terms and which party defaults✓ Correct
CThe agreed commission for the listing broker
DA down payment applied to the purchase price only at the buyer's discretion
Explanation
Earnest money is a good-faith deposit. Whether it is refundable depends on the contract terms—if the buyer properly cancels under a contingency, it is typically refunded; if the buyer defaults without justification, the seller may retain it.
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