ContractsIntermediateDelaware Exam
In a Delaware real estate transaction, earnest money is typically held by:
AThe buyer's attorney
BThe listing broker in their escrow accountCorrect
CThe Delaware Real Estate Commission
DThe title company only
Why The listing broker in their escrow account Is Correct
Answer B: The listing broker in their escrow account
In Delaware, earnest money is typically held in the listing broker's escrow (trust) account until closing or until the contract is otherwise terminated.
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Key Contracts Terms in This Question
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.
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