Contracts
In West Virginia, a broker holding earnest money funds for a disputed transaction should:
ADisburse funds to the party the broker believes is entitled to them
BRetain the funds in escrow until both parties agree in writing or a court orders disbursement✓ Correct
CReturn the funds to the buyer immediately upon demand
DTransfer the funds to the WVREC for safekeeping
Explanation
When earnest money is disputed, the broker must not unilaterally decide who is entitled to it. The broker should retain the funds in the escrow account until the parties reach a written agreement or a court of competent jurisdiction orders disbursement.
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