In Florida real estate transactions, what is the primary purpose of earnest money?
Correct Answer
B) To demonstrate the buyer's good faith and intent to purchase
Correct: Earnest money serves as consideration and demonstrates the buyer's good faith intent to purchase the property. Why not A: Commission is paid separately at closing, not from earnest money. Why not C: Inspection costs are separate from earnest money deposits. Why not D: While it may help secure the property, the primary legal purpose is showing good faith.
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In a Tampa transaction, a buyer wants the Florida rule on disputed earnest money. Which statement is correct?
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A Florida broker holds $15,000 in earnest money in an interest-bearing escrow account. After 90 days, the transaction closes successfully. Who is entitled to the interest earned on the earnest money?