Earnest money in Connecticut must be:

Earnest money is a crucial component of real estate transactions, representing the buyer's good faith and commitment to purchase the property. This concept matters because it creates a binding obligation and protects both parties in the transaction. The question addresses a fundamental procedural requirement in Connecticut real estate practice. To arrive at the correct answer, we must understand that earnest money serves as security for the seller, demonstrating the buyer's serious intent. Option A is incorrect because sellers cannot directly hold these funds due to potential conflicts of interest. Option C is illogical as giving money to the buyer defeats the purpose of demonstrating commitment. Option D is incorrect because all states have specific requirements for handling earnest money. Option B is correct because Connecticut law mandates that earnest money be placed in a neutral third-party account (escrow) as specified in the purchase contract, protecting both parties' interests throughout the transaction process.