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

The seller cannot personally hold the earnest money because doing so would create an unacceptable conflict of interest and expose the buyer's deposit to risk if the seller misappropriates or spends the funds before closing. New York practice specifically requires a neutral escrow holder, not the seller directly.

The buyer's bank does not hold earnest money in escrow in New York real estate transactions — banks are not parties to the purchase contract and have no escrow role in the contract deposit process. While a buyer's bank may eventually fund the mortgage, the contract deposit is held by the seller's attorney.

Unlike many other states where real estate brokers routinely hold earnest money in their trust accounts, New York's attorney-centric transaction process places this responsibility with the seller's attorney, not the broker. While New York brokers are permitted to hold deposits under certain circumstances, the dominant and standard practice — particularly in New York City and surrounding areas — is for the seller's attorney to serve as escrow holder.