Escrow & Title
An Indiana escrow agent's primary duty when holding earnest money in a disputed transaction is to:
AAutomatically release funds to the seller
BHold the funds until the parties agree on distribution, a court orders release, or applicable statutory procedures are followed✓ Correct
CReturn all funds to the buyer immediately
DRelease funds to the party who contacted them first
Explanation
When earnest money is disputed, the escrow agent must not unilaterally release the funds. They must hold funds until the parties resolve the dispute by agreement, court order, or through applicable interpleader procedures.
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