A buyer in Florida puts down earnest money equal to 2% of the purchase price on a $350,000 home. How much earnest money did the buyer deposit?
Correct Answer
B) $7,000
Correct: $350,000 × 0.02 = $7,000 earnest money deposit. Why not A: $6,000 would be less than 2% of the purchase price. Why not C: $7,500 would be more than 2% of the purchase price. Why not D: $8,000 would be approximately 2.3% of the purchase price.
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Previous Question
A Florida real estate broker receives a $10,000 earnest money deposit. The buyer defaults on the contract after the inspection period expires. The seller demands the earnest money, but the buyer claims they should receive it back due to financing issues. What should the broker do?
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All of the following are acceptable forms of earnest money deposits in Florida EXCEPT: