Question

Buyer Yancey offered $6,750 in earnest money with an offer that was accepted. Both Yancy and the seller want the escrow account to be interest-bearing. Will this be allowed?

a) Yes
b) No
c) It depends on state laws
d) Only if the property is commercial

Answer 1

The decision of whether to allow the escrow account to be interest-bearing depends on state laws.

Step-by-step explanation:

The decision of whether to allow the escrow account to be interest-bearing depends on state laws. While some states require escrow accounts to be interest-bearing, others do not. It is important to consult the specific laws of the state where the transaction is taking place to determine whether interest can be earned on the escrow account.