Escrow & Title
An 'interpleader' action in the context of a disputed earnest money deposit means the broker:
ADistributes the earnest money equally between buyer and seller
BFiles a lawsuit to have the court determine who is entitled to the disputed funds✓ Correct
CKeeps the funds pending TREC's investigation
DReturns the funds to the buyer automatically after 30 days
Explanation
When buyer and seller both claim earnest money and the broker cannot determine who is entitled to it, the broker may file an interpleader lawsuit — depositing the funds with the court and asking the court to determine the rightful recipient. This protects the broker from liability for making an incorrect disbursement.
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