Contracts
In a real estate purchase contract, earnest money is typically held by:
AThe buyer until closing
BThe seller in their personal account
CThe listing broker in a trust/escrow account✓ Correct
DThe county recorder's office
Explanation
Earnest money is typically held in the listing broker's trust or escrow account (or by a title company) as a neutral third party until closing or contract termination.
Related Arkansas Contracts Questions
- When a buyer defaults on a purchase contract, the seller's remedy of keeping the earnest money as full compensation is known as:
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