Earnest money in Connecticut must be:

Allowing the seller to hold earnest money directly would create an unacceptable conflict of interest, as the seller has a financial incentive to claim the deposit even in situations where the buyer is legally entitled to a refund. Connecticut law does not permit the seller to hold earnest money, as this would undermine the neutral, protective purpose of the escrow arrangement.

Giving the earnest money directly to the buyer defeats the entire purpose of the deposit, which is to demonstrate the buyer's financial commitment to the transaction and provide the seller with security against buyer default. A buyer who retains the deposit has made no meaningful financial commitment to the transaction.

Stating that there are 'no requirements' is factually incorrect and would expose Connecticut licensees to serious regulatory liability. Connecticut's real estate regulations and professional standards clearly govern earnest money handling, and ignoring these requirements is a common basis for disciplinary complaints against brokers.