Contracts
An earnest money deposit in Vermont is typically how much?
AExactly 1% of the purchase price by law
BAn amount negotiated by the parties, with no fixed legal minimum or maximum✓ Correct
CAlways $1,000 regardless of purchase price
D10% of the purchase price required by VREC
Explanation
Vermont law does not set a fixed earnest money amount. It is negotiated between the parties.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
State-Specific Concepts
Continuing EducationEscrow Disputes
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