Escrow & Title
An 'earnest money escrow agreement' specifies how the earnest money will be dispersed in the event of:
AThe buyer's loan being approved
BA dispute between buyer and seller over who is entitled to the funds✓ Correct
CThe seller's acceptance of the offer
DThe buyer scheduling their home inspection
Explanation
An earnest money escrow agreement outlines the conditions under which earnest money will be disbursed — to the buyer if contingencies aren't met or the seller defaults, to the seller if the buyer defaults, or as applied at closing. It governs disputed disbursements.
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