Contracts
What is a 'release of earnest money' in Rhode Island when a transaction falls through?
AAn automatic return of earnest money to the buyer
BA written agreement signed by both buyer and seller authorizing the escrow holder to release the earnest money to one party✓ Correct
CA court order required before any earnest money can be returned
DA broker's unilateral decision on where the deposit goes
Explanation
When a transaction falls through, the earnest money cannot be released by the escrow holder (broker or attorney) without written agreement from both buyer and seller, or absent such agreement, a court order or arbitration decision.
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