Contracts
A buyer in Wyoming makes an offer with an earnest money check. The seller accepts the offer. Who owns the earnest money at this point?
AThe broker, as compensation for services
BThe seller, as part of the purchase price
CEquitably, the buyer and seller have an interest; it is held in trust pending closing✓ Correct
DThe buyer, until the deed is delivered
Explanation
Earnest money is held in trust by the broker or escrow company. While it is credited toward the buyer's purchase price at closing, ownership is disputed if the transaction fails. The contract governs who gets the earnest money if the deal falls through.
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