Discuss Real Estate Licensing Maryland-Real-Estate-Salesperson Exam Topic 11 Question 18

When an offer is prepared by a licensee for a buyer to present to a seller, who determines the amount of the earnest money offered?

AThe broker

BThe buyer

CThe licensee

DThe seller

Suggested Answer: B

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

The buyer determines the amount of the earnest money deposit, since it is the buyer's good-faith indication of intent to perform under the contract.

The licensee can explain customary local practices and typical deposit amounts but may not set or require a specific figure.

The offer, including the deposit amount, becomes binding only when accepted by the seller.

This is emphasized in the Contracts and Offer Preparation module, which explains that the buyer controls all offer terms, including price, contingencies, and deposit.

Reference (Maryland Source):

-- Maryland 60-Hour Principles and Practices Course, Real Estate Contracts section.

-- Business Occupations and Professions Article 17-322 (Improper Brokerage Practices).

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12 comments · newest first

Raina 1 month ago

I feel like it should be A) The broker. They have the final say on earnest money.

Marlon 1 month ago

I disagree, it's C) The licensee. They guide the buyer on this.

Loreen 1 month ago

I think it's B) The buyer. They decide how much to put down.

Lynelle 2 months ago

Really? I always assumed it was the broker's call.

Ruby 2 months ago

Definitely the buyer! They need to show their commitment.

Shayne 2 months ago

Wait, so the seller doesn't get to influence it at all?

Annelle 2 months ago

I thought the licensee had a say in that too?

Tamekia 2 months ago

It's usually the buyer who decides the earnest money amount.

Janet 2 months ago

I thought the broker had a say in it, but now I'm leaning towards the buyer being the one who determines the amount.

Thersa 3 months ago

I feel like the seller might have some influence on the earnest money, but it seems more like the buyer's choice.

Sena 3 months ago

I remember a practice question where the licensee helped the buyer figure out the earnest money, but I can't recall if they actually determine it.

Floyd 3 months ago

I think the buyer usually decides on the earnest money amount, but I'm not completely sure.

Real Estate Licensing Maryland-Real-Estate-Salesperson Exam - Topic 11 Question 18 Discussion