Contracts
An earnest money deposit is legally the property of:
AThe listing broker
BThe buyer until the contract is fully performed or a dispute is resolved✓ Correct
CThe seller immediately upon acceptance
DThe escrow company permanently
Explanation
Earnest money is held in trust for the parties. The buyer retains an equitable interest until contract performance or proper disposition. The broker holds it in a trust account and cannot use it as their own funds.
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