To whom can an earnest money deposit (EMD) be written?

An earnest money deposit (EMD) serves as a demonstration of the buyer's good faith in a real estate transaction, indicating their serious intent to purchase a property. The correct choice identifies that the EMD can be directed to the buyer's firm, listing firm, or attorney, highlighting the flexibility in handling these funds.

When buyers make an earnest money deposit, it is typically held in a trust account for their protection until the transaction is concluded. The buyer’s firm is often the initial recipient, managing the deposit on behalf of the buyer. In cases where the buyer is working through a listing firm, that firm may also be permitted to hold the EMD. Furthermore, legal representation by an attorney can provide another avenue for securing the deposit, ensuring compliance with applicable laws and regulations.

This arrangement allows for coverage of various scenarios in real estate transactions and provides a level of security for both buyers and sellers. Thus, acknowledging that the EMD can be written to any of the mentioned recipients underpins the cooperative nature of real estate dealings and the importance of maintaining trust and security throughout the process.