Earnest money in Maryland must be:

Holding earnest money by the seller is incorrect and could be considered commingling of funds. Maryland law requires earnest money to be held by a neutral third party (the broker) rather than directly by the seller to protect both parties' interests.

Giving earnest money to the buyer is completely incorrect as it defeats the purpose of earnest money, which is to demonstrate the buyer's commitment and provide security for the seller. This would be a fundamental violation of contract principles.

There are specific requirements for handling earnest money in Maryland, so option D is incorrect. State regulations mandate proper handling and accounting of these funds to protect all parties involved in the transaction.