Final answer:
The recipient of the interest on a deposit in a real estate contract where the buyer defaults and the contract is silent on the issue would likely be the seller or as directed by state law or the court.
Step-by-step explanation:
When a buyer defaults on a real estate contract, the disposition of the interest on the deposit typically depends on the terms of the contract and state law. If the contract does not specify who gets the interest, the matter may be decided by the court based on the principles of contract law and equitable considerations. Generally, the party entitled to the deposit itself (often the seller in case of buyer default) may also be entitled to the interest earned. However, without explicit terms in the contract, it could be argued that the interest should follow the principal, but state statutes could also affect the outcome. A broker typically would not be entitled to the interest on the deposit unless specifically provided for in contract or by law. CARHOF, assuming it is the Colorado Association of Realtors Housing Opportunity Foundation or a similar entity, would not automatically receive the interest on the deposit unless a specific statute or rule directs unclaimed or disputed funds to it.