Earnest money in Connecticut must be:

The seller cannot directly hold the earnest money as this creates a potential conflict of interest. The seller might be tempted to improperly use or retain the funds if the transaction fails, rather than returning them as required.

Giving earnest money to the buyer defeats the entire purpose of the deposit. The funds are meant to demonstrate the buyer's commitment to the purchase and provide security for the seller, not to be given back to the buyer.

All states, including Connecticut, have specific requirements for handling earnest money. There are always requirements - the only question is what those requirements are, and in Connecticut, they mandate escrow deposit per contract terms.