Contracts
A Kentucky earnest money deposit that is being held in a broker's trust account during a disputed transaction should:
ABe released to the seller automatically after 30 days
BRemain in the trust account until both parties agree or a court orders its release✓ Correct
CBe returned to the buyer pending resolution of the dispute
DBe submitted to KREC for safekeeping
Explanation
When earnest money is in dispute, the broker holding the funds should keep them in the trust account until both parties agree in writing on the proper disbursement, or until a court order or interpleader action resolves the dispute. The broker should not unilaterally release the funds.
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