The earnest money deposit is a key component of the purchase offer, signifying the buyer's good faith and serious intent to purchase the property. As the party making the offer, the buyer determines all the initial terms, including the price, contingencies, and the amount of earnest money they are willing to put down. While the real estate licensee provides guidance on what might be a customary or competitive amount, the final decision rests solely with the buyer, as it is their funds and their offer being presented to the seller.

A. The broker: The broker is responsible for supervising the transaction and holding the earnest money in escrow but does not dictate the financial terms of a client's offer.

C. The licensee: The licensee acts as an advisor and fiduciary to the buyer, but they cannot make financial decisions or determine the terms of the offer on the buyer's behalf.

D. The seller: The seller can accept, reject, or counter the amount of earnest money offered, but they do not determine the amount in the buyer's initial offer.

1. White, D. A. (2023). Maryland Real Estate Practice & Law (17th ed.). Rockwell Publishing.

Chapter 11: Sales Contracts, Section: Earnest Money Deposits. This chapter explains that the earnest money deposit is a term of the contract proposed by the purchaser (buyer). It states, "The amount of the deposit is a matter for negotiation between the parties, but the offer is initiated by the purchaser." This confirms the buyer determines the amount in the initial offer.

2. Maryland Real Estate Commission. (2024). Code of Maryland Regulations (COMAR), Title 09, Subtitle 11, Chapter 02, Regulation .01 - Relations to the Client.

Section C(1): This section of the Code of Ethics requires a licensee to "protect and promote the interests of the client." This fiduciary duty implies that the licensee must act on the client's (the buyer's) instructions regarding the terms of an offer, rather than determining those terms themselves. The decision on the earnest money amount is a client decision.

3. Gibson, F., & Sjoberg, K. (2022). Real Estate Law (11th ed.). OnCourse Learning.

Chapter 9: Contracts for the Sale of Real Property. The text clarifies the formation of a real estate contract, noting that the offeror (the buyer) sets forth the initial terms of the offer for the offeree (the seller) to consider. The earnest money deposit is explicitly identified as one of these buyer-determined terms.