A buyer can submit the earnest-money deposit in the form of _______.

An earnest money deposit (EMD) serves as consideration to bind a real estate contract. While a personal check is the most common form, Maryland law permits other forms of value as long as they are agreed upon by both parties. A post-dated check or a promissory note are acceptable forms of EMD, provided that the seller is explicitly notified of the form of the deposit before the contract is accepted. This disclosure is mandated because these forms represent a future promise to pay rather than immediately available funds. A verbal assurance, however, is not a tangible asset and is unenforceable, making it an invalid form of deposit.

D. Verbal assurance: This is not a valid form of deposit as it is not tangible, has no monetary value, and is unenforceable under the Statute of Frauds for real estate contracts.

1. Code of Maryland Regulations (COMAR), Title 09, Subtitle 11, Chapter 01, Regulation .13 (Promissory Note as Earnest Money Deposit):

"If a purchaser gives a promissory note as an earnest money deposit, the licensee who is the agent of the seller shall disclose this fact to the seller before the seller accepts the offer to purchase." This regulation explicitly validates the use of a promissory note as an EMD, contingent on disclosure. The same principle of disclosure applies to other non-standard forms like post-dated checks.

2. University of Maryland Francis King Carey School of Law, Course: "Real Estate Transactions," Course Materials on Contract Formation:

Course materials emphasize that an earnest money deposit is a form of consideration, which can be anything of legally sufficient value bargained for by the parties. This includes promises to pay in the future (like a promissory note), so long as there is mutual agreement. The form of the deposit is an essential term that must be agreed upon.

3. Maryland REALTORS®, Residential Contract of Sale, Section 5 "DEPOSIT":

The standard Maryland REALTORS® contract form requires the buyer to specify the form of the deposit (e.g., "check," "note," "wire"). This contractual provision confirms that various forms are contemplated and permissible, subject to the seller's agreement upon execution of the contract.