Contracts
Under New Jersey law, earnest money in a real estate transaction is typically held in escrow by:
AThe seller until closing
BThe listing broker or an attorney in a separate escrow account✓ Correct
CThe buyer's bank in a joint account
DThe county clerk's office
Explanation
In NJ, earnest money (good faith deposit) is typically held in a non-commingled escrow account by the listing broker or an attorney. Brokers must maintain separate escrow accounts and cannot use client funds for operating expenses.
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