ContractsEarnest_money_and_escrowEASY
Earnest money in a real estate transaction serves to:
Correct Answer
B) Show the buyers good faith
Earnest money (also called a good faith deposit) demonstrates the buyer's serious intent to complete the purchase. It is typically held in escrow and applied to the purchase price at closing.
Answer Options
A
Pay the agents commissionB
Show the buyers good faithC
Cover closing costsD
Pay the sellers mortgageVideo Explanation2 min
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Related Topics & Key Terms
Related Topics:
contract-contingenciesescrow-accountsbuyer-default-remedies
Key Terms:
earnest moneygood faith depositescrowpurchase contractliquidated damages
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