Contracts

An earnest money dispute in Oregon between the buyer and seller is typically resolved by:

AThe Oregon Real Estate Agency determining who receives the funds
BThe escrow/title company holding the funds pending a written agreement between parties or a court order✓ Correct
CThe listing broker deciding who is entitled to the earnest money
DAutomatic forfeiture to the seller if the buyer defaults

Explanation

When a buyer and seller dispute the disposition of earnest money, the escrow holder (broker trust account or title company) must retain the funds until the parties reach a written agreement or a court orders the disbursement. The escrow holder cannot release disputed funds unilaterally.

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