Contracts
The purpose of an earnest money check made payable to the listing broker (rather than the seller) is to:
AEnsure the broker is compensated first
BPlace the funds in the broker's trust account, maintaining neutrality and proper accounting✓ Correct
CAllow the broker to invest the funds during the transaction
DGive the broker authority to disburse funds at will
Explanation
Earnest money payable to the broker is deposited into the broker's separate trust (escrow) account, where it is held neutrally for the benefit of the parties according to the contract terms.
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