If an earnest money deposit isn't accepted, what must happen according to Kentucky law?

In Kentucky, if an earnest money deposit is not accepted, the law mandates that it must be returned to the buyer immediately. This requirement protects buyers by ensuring they are not left without their funds should a deal not proceed due to the seller's refusal to accept the offer. The principal behind this regulation is to foster fair treatment in real estate transactions and to maintain trust in the process.

When funds are held in escrow, they are intended to secure the buyer's offer as a sign of good faith; however, if the seller does not accept the offer, the buyer is entitled to have their deposit returned without delay. The other options presented, such as keeping the money indefinitely, forfeiting it to the listing agent, or allowing it to remain with the seller, would not adhere to the standards set forth in Kentucky real estate law and could lead to disputes or ethical violations in the transaction process.