Contracts
An earnest money deposit held in the broker's escrow account is:
AThe broker's property until the transaction closes
BThe buyer's property held in trust pending performance of the contract✓ Correct
CThe seller's property from the moment the offer is accepted
DJoint property of the buyer and seller equally
Explanation
Earnest money is the buyer's funds held in trust by the broker. The broker holds it as a neutral stakeholder. It belongs to the buyer unless and until there is a proper disposition (applied at closing, released to seller upon default, or returned to buyer upon legitimate cancellation).
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