Escrow & Title
In South Dakota, 'earnest money' deposited with a broker in connection with a real estate transaction must be:
ADeposited in the broker's personal account
BHeld in a separate trust or escrow account✓ Correct
CPaid directly to the seller upon receipt
DReturned to the buyer within 24 hours
Explanation
South Dakota real estate license law requires that earnest money and other funds received by a broker in connection with a real estate transaction be deposited promptly in a separate trust or escrow account, not commingled with the broker's personal or business funds.
Related South Dakota Escrow & Title Questions
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