Contracts
In South Carolina, earnest money is typically held by:
AThe seller's attorney
BThe listing broker or another designated escrow holder specified in the contract✓ Correct
CThe state real estate commission
DThe seller directly
Explanation
Earnest money is typically held in escrow by the listing broker or as specified in the purchase contract. In South Carolina, attorneys or title companies may also serve as escrow agents.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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