Contracts
In a Vermont real estate contract, an 'earnest money deposit' serves primarily as:
AThe down payment at closing
BEvidence of the buyer's good faith and partial consideration to make the contract binding✓ Correct
CThe first month's mortgage payment
DA fee paid to the Vermont Real Estate Commission
Explanation
Earnest money demonstrates the buyer's good faith intention to complete the purchase and provides consideration that helps make the contract legally binding. It is typically applied toward the purchase price at closing but is not itself the down payment.
Related Vermont Contracts Questions
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- Which of the following would make a Vermont real estate contract voidable (not void)?
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- A counteroffer in Vermont real estate negotiations:
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