Question

A buyer pays a deposit to the seller in advance before completing the transaction. which term best defines this?
A: down payment
B: Earnest money
C: mortgage application fee

Answer 1

Answer:

B. Earnest money

Step-by-step explanation:

We have the statement,

'A buyer pays a deposit to the seller in advance before completing the transaction'.

'Earnest money' is 'the amount deposited by the buyer to the seller in advance, as a representation of a good faith to buy the required thing'.

Thus, we see that the statement represents 'Earnest money'.

So, option B is correct.

Answer 2

Answer:

B

Step-by-step explanation: