Contracts
Earnest money in Tennessee is typically held in the:
ABuyer's personal savings account
BSeller's attorney's escrow account or the listing broker's trust account✓ Correct
CTREC's designated escrow fund
DThe title company's operating account
Explanation
In Tennessee, earnest money is typically held in the listing broker's trust account or the closing attorney's escrow account pending closing. The specific holder is designated in the purchase contract.
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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.
Math Concepts
State-Specific Concepts
Trust Account RulesTREC Regulation
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