Contracts
In Massachusetts, an earnest money deposit in a real estate transaction is typically held by:
AThe seller until closing
BThe listing broker in an escrow account✓ Correct
CThe buyer's lender
DThe county clerk of courts
Explanation
In Massachusetts, earnest money (the initial deposit on an Offer to Purchase or the deposit on a Purchase and Sale Agreement) is typically held by the listing broker in a dedicated escrow (trust) account. Massachusetts law requires brokers to maintain separate escrow accounts for client funds.
Related Massachusetts Contracts Questions
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