What provides the best evidence of the buyer's intention to perform under a real estate purchase contract?

• A. Earnest Money Deposit
• B. Mortgage Commitment
• C. Signed Contract
• D. Down Payment

Answer: (A)

Earnest money deposit is the best evidence of the buyer's intention to perform under a real estate purchase contract. Putting money down shows the buyer is serious and committed to moving forward, not just casually exploring the deal. The funds are typically held in escrow and applied toward the purchase at closing, so the buyer has a financial stake in fulfilling the contract. If the buyer breaches without a valid contingency, the seller can often keep the earnest money as liquidated damages, which reinforces the seriousness of the commitment. Financing or a mortgage commitment can be contingent and may not prove ongoing intent to close, and a signed contract confirms agreement to terms but doesn’t by itself prove the buyer will actually perform if contingencies arise. A down payment indicates progress toward purchase but doesn’t carry the same signal of commitment or risk to breach as earnest money.