Escrow & Title
In Virginia, when a broker holds earnest money in escrow and the transaction falls through, the broker may:
AKeep the money as a commission
BRelease funds only with written authorization from all parties or a court order✓ Correct
CReturn the money to the buyer automatically
DGive the money to the seller automatically
Explanation
When a Virginia transaction fails, the broker must hold the earnest money until receiving written instructions from all parties or a court order directing disbursement. The broker cannot unilaterally release funds.
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