Contracts
Under a Virginia real estate contract, earnest money is typically held by:
AThe seller's attorney
BThe Virginia Real Estate Board
CThe listing broker or settlement agent in escrow✓ Correct
DThe buyer's lender
Explanation
In Virginia, earnest money (good faith deposit) is typically held in escrow by the listing broker or the settlement/escrow agent until closing or contract termination.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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