The FAR/BAR residential contract requires earnest money held by:

The seller cannot hold earnest money directly as this creates a conflict of interest. The funds must be held by a neutral third party to protect the buyer's interests and ensure proper handling. If the seller held the money, they could potentially misuse it or claim it improperly if the transaction falls through, violating the purpose of earnest money as a good faith deposit.

FREC is the regulatory body that oversees real estate licensees in Florida, not a financial institution. It doesn't handle or hold earnest money funds for transactions.

The seller cannot hold the earnest money directly as it creates a conflict of interest. The seller has a vested interest in the transaction and cannot be trusted to safeguard the buyer's funds impartially.