Contracts
When a buyer makes an earnest money deposit in Rhode Island, the funds are typically held by:
AThe buyer's bank until closing
BThe seller until closing
CThe broker's escrow/trust account pending closing✓ Correct
DThe Rhode Island Division of Commercial Licensing
Explanation
Earnest money deposits in Rhode Island are typically held in the broker's escrow or trust account until closing or until the contract is terminated. The funds cannot be commingled with the broker's personal funds.
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