Contracts
Under West Virginia law, 'earnest money' deposited with a purchase contract is best described as:
AThe broker's commission paid in advance
BA good-faith deposit demonstrating the buyer's intent to purchase✓ Correct
CA non-refundable option fee
DPart of the seller's proceeds
Explanation
Earnest money is a good-faith deposit made by the buyer to demonstrate serious intent to complete the purchase. In West Virginia, it is typically held in an escrow account and applied to the purchase price at closing or returned/forfeited based on contract contingencies.
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