Escrow & Title
In Oregon, what is an 'earnest money' deposit and how is it typically handled?
AA non-refundable payment to the seller at contract signing held by the seller
BA good-faith deposit held in trust by the escrow company or brokerage✓ Correct
CA direct payment to the listing broker as partial commission
DA deposit paid directly to the lender to lower the interest rate
Explanation
Earnest money in Oregon is a good-faith deposit made by the buyer when an offer is accepted. It is held in a trust account by the escrow company or the real estate brokerage's trust account. It applies toward the purchase price at closing, and its disposition upon cancellation depends on the contract terms and circumstances.
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