Contracts
An earnest money deposit in a Vermont real estate transaction is held in the broker's trust account and is:
AThe broker's compensation for negotiating the transaction
BEvidence of the buyer's good faith and part of the buyer's payment at closing✓ Correct
CA non-refundable fee paid to the listing broker
DKept by the listing broker regardless of the transaction outcome
Explanation
Earnest money demonstrates the buyer's serious intent and becomes part of the purchase price at closing. It is held in trust — not owned by the broker — and is refundable if the contract fails due to a contingency or seller default.
Related Vermont Contracts Questions
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