Under the standard Real Estate Purchase & Sale Agreement, who holds the earnest money?
A. The form permits the parties to select who will hold the money — typically, the listing firm, or the selling firm. Whenever a licensed real estate firm or agent holds any esrnest money, it must be deposited in a trust or escrow account until closing. However, if any addenda are used with the form, check to see whether they conflict with any provisions in the form concerning who will hold the earnest money or other pre-closing deposits. The standard for “RE-21 Real Estate Purchase & Sale Agreement ” is a well-known and widely used form adopted by the Idaho Association of REALTORS® (which is a copyrighted form).
