Contracts
Under Pennsylvania law, earnest money deposited by a buyer is:
AImmediately transferred to the seller upon contract execution
BHeld in an escrow or trust account by the broker until closing✓ Correct
CApplied directly to the broker's commission
DHeld by the seller in their personal bank account
Explanation
In Pennsylvania, earnest money (deposit) must be placed in the broker's escrow or trust account within a specified time. It cannot be commingled with the broker's personal funds and is held until closing or the contract is terminated.
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