Which of the following describes the term "earnest money"?

The term "earnest money" refers specifically to a deposit that a buyer provides to show their serious intent to purchase a property. This deposit is typically submitted with an offer to buy and serves as a gesture of good faith to reassure the seller that the buyer is committed to the transaction. The earnest money is held in a trust or escrow account and is used to apply toward the buyer's down payment or closing costs when the sale is finalized. If the deal does not go through for certain reasons defined in the purchase agreement, the buyer may get their earnest money back, but if they back out without valid cause, they may forfeit this deposit to the seller.

The other choices pertain to different aspects of real estate transactions. For example, the final payment made at closing is not considered earnest money but is part of the overall purchasing process. Fees paid for real estate agent services and the total cost of purchasing a home also do not align with the definition of earnest money, as they relate to compensation for real estate services and the complete financial obligation associated with acquiring a property, respectively. Thus, the option stating that earnest money is a deposit reflecting a buyer's serious intent is the most accurate representation of the term.