Which of the following statements about a deposit is true?

The statement that a deposit represents a financial commitment to the purchase is accurate. When a buyer submits a deposit, it signifies their serious intention to proceed with the transaction. This financial commitment helps establish good faith in the buyer's offer and can demonstrate to the seller that the buyer is motivated and invested in completing the purchase.

This commitment is often a percentage of the purchase price and is typically held in trust until the transaction is finalized. It can play a critical role in the negotiation process, as it underscores the buyer's seriousness and can potentially strengthen their offer in the eyes of the seller.

Other options might confuse aspects of how deposits work. For instance, while some deposits may be refundable under certain conditions, they are not strictly limited to instances where the buyer backs out of the contract. Also, deposits are not standardized to always be a set percentage like 10%, and they can indeed serve as a negotiation tool, influencing terms on both sides.