Contracts
In Montana, an earnest money deposit held in a broker's trust account becomes:
AThe broker's property upon acceptance of the offer
BClient trust funds that cannot be commingled with broker operating funds✓ Correct
CTax-deductible for the buyer immediately
DThe seller's property upon contract acceptance
Explanation
Earnest money deposits in Montana must be held in a properly maintained trust account and cannot be commingled with the broker's personal or operating funds. These funds remain client trust funds until the transaction closes or is terminated.
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