Contracts
In a New York real estate transaction, earnest money (contract deposit) is typically held by:
AThe listing broker in a non-interest-bearing account
BThe seller's attorney in an escrow account✓ Correct
CThe buyer's attorney
DThe title company
Explanation
In New York, it is customary for the seller's attorney to hold the contract deposit (earnest money) in an escrow account. This differs from many other states where the broker holds the deposit. The funds are held until closing or until the contract is properly terminated.
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