Earnest money in South Carolina must be:

Option A is incorrect because South Carolina does not allow sellers to directly hold earnest money. This creates potential commingling issues and liability concerns, which is why escrow arrangements are mandated.

Option C is incorrect because it defies the purpose of earnest money. Buyers provide this money to demonstrate good faith, not to give it to themselves. This option represents a fundamental misunderstanding of earnest money purpose.

Option D is incorrect because South Carolina does have specific requirements for earnest money handling. The state mandates proper escrow arrangements to protect transaction participants.