What is the correct form that can accompany a purchase agreement as a deposit?

• A. Earnest money contract
• B. Power of attorney
• C. Appraisal report
• D. Lease agreement

Answer: (A)

Earnest money is the deposit that accompanies a real estate purchase agreement to show the buyer’s seriousness and to secure the seller during the deal. The form that documents this deposit and its terms is the earnest money contract. It formalizes the amount placed in escrow, the conditions under which it is refundable, and how it will be applied toward the purchase price at closing. This makes it the appropriate document to accompany a purchase agreement as a deposit.

The other items don’t fit because they serve different purposes: a power of attorney authorizes someone to act on another’s behalf, an appraisal report evaluates property value, and a lease agreement governs renting rather than buying.