Escrow & Title
An Iowa escrow agent who receives conflicting instructions from buyer and seller regarding the disposition of earnest money should:
AReturn the money to the buyer automatically
BFollow the seller's instructions since the property is theirs
CRetain the funds and seek legal guidance or file an interpleader action✓ Correct
DDistribute the money equally between the parties
Explanation
When there is a legitimate dispute over earnest money, the escrow agent should retain the funds and seek legal guidance or file an interpleader action with the court to let a judge determine the proper disposition.
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