Question

Earnest money is: Group of answer choices The value of your home used to calculate property taxes The estimated current value of your home in the market The price you pay for your home The cost of home insurance The amount of money the buyer deposits when they buy

Answer 1

Answer:

The amount of money the buyer deposits when they buy

Explanation:

In real estate, earnest money is an amount of money that the buyer hands gives to the seller (around 1-3% of the property's price) once they sign a purchase agreement. It is basically a good faith deposit that generally is held in a trust or escrow account.

If the purchase agreement is not carried out and the buyer is responsible for it, the seller gets to keep the earnest money. If the seller was responsible for the agreement not being fulfilled, then the earnest money is returned to the buyer.

Answer 2

Answer:

The amount of money the buyer deposits when they buy

Explanation:

Earnest money is the money a buyer pays to a seller which is usually like a deposit when they are purchasing a property to show how serious they are in purchasing the property.

When the seller gets the earnest money from the buyer, he is rest assured that the buyer is willing to purchase the property, so he gives him enough time to rally around to get the balance while he list the property off the sales market.

Without earnest money, most sellers are probably going to sell their properties to customer who brings money first.