When earnest money is placed into an escrow account to secure the purchase of real estate, which of the following is TRUE?

The manay as recurned to the buyer if the buyer chooses not to go through with closing.

The saller caculy gets to keep the money as a penalty if it is the buyer's fault the sale does not "close"

The manigy is used to pay the agent's fee, and is not applied to the down payment.

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