Tennessee License Law
Under Tennessee license law, 'earnest money' must be deposited in a trust account that is:
AInterest-bearing with interest payable to the broker
BSeparate from the brokerage's operating account✓ Correct
CIn the licensee's personal savings account
DRegistered with TREC
Explanation
Client funds (including earnest money) must be held in a separate trust/escrow account completely separate from the brokerage's operating account. Commingling is prohibited.
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