During a real estate transaction, what must the seller be informed about regarding the buyer's earnest money?

In a real estate transaction, the seller needs to be informed about the buyer's intentions regarding the earnest money, particularly when it comes to the potential for a refund. This information is crucial because it directly impacts the seller's understanding of the transaction's dynamics and the buyer's commitment. If the buyer expresses a desire for a refund, it may indicate that they are reconsidering their commitment to the purchase, which could affect the transaction's viability and the seller's plans.

Being aware of the buyer's interest in a refund allows the seller to address any concerns and make informed decisions regarding the sale. This knowledge fosters clear communication and can help prevent misunderstandings that might arise later in the process.

While there are other aspects of earnest money, they do not provide relevant information for the seller in this context. For example, stating that the earnest money is held by the listing agent or discussing investment strategies for the money before closing does not convey the buyer's intentions, nor does it affect the seller’s understanding of the situation as directly as knowing about potential refund demands.