Contracts

In South Carolina, a 'release of earnest money' form is used when:

AThe closing is complete and earnest money is applied
BA dispute arises over earnest money and both parties must agree to its release✓ Correct
CThe broker decides to keep the earnest money
DThe buyer requests their money back after closing

Explanation

When a transaction falls apart and there's a dispute over earnest money, both parties must sign a release authorizing the broker to disburse the funds. The broker cannot release disputed funds unilaterally.

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