Henry's offer included a binder deposit of how much?

Henry's offer included a binder deposit of how much?

• A. $3,000
• B. $4,000
• C. $2,000
• D. $5,000

Answer: (D)

Earnest money, or a binder deposit, is a buyer’s show of serious intent and is held in escrow once an offer is accepted. The exact amount is determined and stated in the offer, and the contract specifies when it must be deposited (usually within a few business days after acceptance). In Henry’s case, the offer called for a binder deposit of five thousand dollars. This amount signals strong commitment and helps protect the seller by reducing the risk the buyer will back out, while the contract also outlines contingencies that can protect the buyer and describe how the deposit is credited toward closing or refunded if the deal doesn’t close.

Earnest money, or a binder deposit, is a buyer’s show of serious intent and is held in escrow once an offer is accepted. The exact amount is determined and stated in the offer, and the contract specifies when it must be deposited (usually within a few business days after acceptance). In Henry’s case, the offer called for a binder deposit of five thousand dollars. This amount signals strong commitment and helps protect the seller by reducing the risk the buyer will back out, while the contract also outlines contingencies that can protect the buyer and describe how the deposit is credited toward closing or refunded if the deal doesn’t close.