Which of the following best describes earnest money in a real estate transaction?

Earnest money is best described as a deposit to secure an offer in a real estate transaction. This money demonstrates the buyer's seriousness and commitment to purchasing the property. It acts as a form of financial assurance that the buyer will proceed with the purchase if the sale terms are met, showing the seller that the buyer is earnest in their intentions.

Typically, this deposit is held in an escrow account and is applied toward the down payment or closing costs when the transaction is successfully completed. If the buyer backs out of the deal without a valid reason specified in the contract, the seller may be entitled to keep the earnest money as compensation for taking the property off the market and potential lost opportunities.

The other options refer to different aspects of a real estate transaction. A fee paid by the seller doesn't accurately represent earnest money, as it is specifically related to the buyer. A commission for the broker pertains to payment for services rendered by the real estate agent rather than a buyer's deposit. A fee for closing services involves costs associated with completing the transaction, not the initial earnest money deposited to secure the buyer's offer.