Contracts
An earnest money deposit in Connecticut is typically held by:
AThe seller's attorney
BThe listing broker in a trust or escrow account✓ Correct
CThe buyer's bank
DThe Connecticut Department of Banking
Explanation
In Connecticut, earnest money deposits are typically held by the listing broker in a designated trust (escrow) account, separate from the broker's operating funds, until closing or another disposition.
People Also Study
Related Connecticut Questions
- A Connecticut real estate broker who misappropriates funds held in their escrow account is subject to:Escrow & Title
- A Connecticut buyer submits an offer to purchase and deposits $5,000 in escrow with the listing broker. The contract specifies the earnest money will be held in a non-interest-bearing account. Under Connecticut law, this escrow arrangement is:Contracts
- A Connecticut broker receives trust funds from a buyer's earnest money deposit. The broker must deposit these funds into the escrow account within:Connecticut License Law
- A Connecticut broker inadvertently deposits a client's earnest money into the firm's operating account instead of the trust account. Upon discovering the error, the broker should:Connecticut License Law
- Under Connecticut law, earnest money deposited under a purchase contract is typically held:Contracts
- An 'earnest money deposit' in a Connecticut real estate transaction is best described as:Contracts
- In Connecticut, an 'earnest money deposit' in a real estate contract serves primarily as:Contracts
- Under Connecticut law, a real estate broker must maintain trust account records for a minimum of:Connecticut License Law
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
State-Specific Concepts
Escrow Disputes
Study This Topic
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →