Contracts
In Iowa, earnest money deposited with a real estate broker must be placed in:
AThe broker's personal checking account
BA federally insured trust or escrow account separate from brokerage operating funds✓ Correct
CAn interest-bearing account in the buyer's name
DAny financial institution chosen by the seller
Explanation
Iowa law requires brokers to place earnest money in a separate, federally insured trust or escrow account, completely separate from the brokerage's operating accounts. This prevents commingling and protects client funds.
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