What is required for a builder to accept a non-refundable deposit in addition to an earnest money deposit?

The correct answer for the requirements surrounding a builder accepting a non-refundable deposit in addition to an earnest money deposit is that it must be held in a trust account. This ensures that the funds are managed responsibly and are protected until they are either applied to the purchase or returned correctly, depending on the terms agreed upon in the contract. Trust accounts are essential in real estate transactions as they help to maintain transparency and accountability between the buyer and the builder.

In real estate and construction transactions, handling of deposits is a significant aspect governed by law to protect consumers and ensure ethical practices. While factors such as written agreement (suggested in an alternative choice) or limits on deposits might play roles in the negotiation process, the primary requirement here centers on proper fund management and compliance with legal standards for holding deposits, which is satisfied by utilizing a trust account.