Earnest money (down payment) in NY is typically held by:

The seller cannot directly hold earnest money as this creates a conflict of interest and fails to provide proper protection for the buyer's funds. Sellers having direct access to deposits violates standard real estate escrow practices.

The buyer's bank typically handles mortgage funds, not earnest money deposits. While banks may be involved in the transaction, they don't typically serve as escrow agents for contract deposits in NY.

Real estate brokers in NY cannot hold earnest money in escrow due to state regulations. This differs from many other states where brokers often serve as escrow agents for earnest money deposits.