Illinois Real Estate Exam Practice Question
What amount of earnest money, if any, must a buyer deposit with an offer to purchase to make the purchase agreement enforceable?
Correct Answer: C
Rationale: In real estate transactions, while earnest money can demonstrate a buyer's commitment, it is not a legal requirement for enforceability. Option A incorrectly suggests specific percentages for earnest money based on loan types, which are not mandated by law. Option B misinterprets that cash purchases require no earnest money; while it's common to forgo it, it isn't a legal stipulation. Option D proposes a nominal amount as a requirement, which is misleading; in fact, any amount can suffice, but it is not a necessity. Thus, no earnest money is legally required in any transaction.
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