In Georgia, when must a broker deposit earnest money in a separate trust or escrow account?

In Georgia, the requirement for a broker to deposit earnest money in a separate trust or escrow account is contingent on the agreement of all parties involved. This means that unless there is a specific written agreement stating otherwise, the broker is mandated by law to protect the earnest money in a separate account. This rule ensures that the funds are handled appropriately and adds a layer of security to the transaction, safeguarding the interests of all parties.

The rationale behind this requirement is to prevent potential conflicts and disputes that may arise from mishandling the funds. By placing earnest money in an escrow account, it ensures transparency and accountability in the real estate transaction process. It is crucial for brokers to adhere to this rule to maintain professionalism and compliance with state regulations.

Other choices do not align with the legal framework governing earnest money deposits in Georgia. The amount of earnest money, the broker's internal policy, and the seller's request do not override the necessity for a mutual, written agreement to deviate from the standard practice of placing earnest money into a trust or escrow account. This underscores the importance of having a clear agreement established among all parties when it comes to handling earnest money.