Which of the following refers to money that is provided by a potential purchaser and applied toward the purchase price of property if the sale goes through,but forfeited if the buyer changes his or her mind?
A) Earnest money
B) A down payment
C) Guaranteed funds
D) Good faith money
E) Proof money

Question

Quizplus · Accepted Answer

Once the buyer finds a desired property, she makes a written offer to purchase under specified conditions and puts up earnest money designed to establish the seriousness of her offer. If the seller accepts the offer, the earnest money will apply toward the purchase price. If the buyer changes her mind before the seller accepts, she forfeits the earnest money.

Which of the Following Refers to Money That Is Provided