Agency
A Massachusetts listing broker receives an earnest money deposit. The broker's obligation is to:
AApply it immediately to the commission
BHold it in a separate trust account and disburse it per the contract terms and/or instruction of the parties✓ Correct
CReturn it to the buyer immediately
DForward it to the seller immediately
Explanation
The listing broker holds the deposit in a trust account as a fiduciary. The broker must disburse it according to the P&S contract terms—typically to the seller at closing, returned to the buyer if a contingency fails, or per court order if disputed.
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