Contracts第 51 / 120 题

Earnest money in a real estate contract functions primarily as:

a.A good-faith deposit showing the buyer's serious intent to purchase
b.The full purchase price paid up front
c.A nonrefundable fee paid to the listing agent
d.A payment that replaces the down payment entirely

解析

Earnest money is a deposit that demonstrates the buyer's good faith and is typically credited toward the purchase price or closing costs at closing. If the buyer defaults without a valid contingency, the earnest money may be forfeited to the seller.

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