Minnesota · Minn. Stat. §82.75Minnesota earnest money: who holds it, the 3-day default and when it's released

In Minnesota, trust funds received by a broker or its salespeople or closing agents go into the broker's trust account, except money paid to a party under an express written agreement of the parties (Minn. Stat. §82.75, subd. 1). Unless the parties agree otherwise in writing, the broker holding the funds is the listing broker, and earnest money is deposited into the listing broker's trust account under the terms of the parties' written agreement; if the agreement is silent on timing, within three business days of receiving the earnest money or of final acceptance of the purchase agreement, whichever is later. If the offer is rejected, the earnest money goes back to the buyer no later than the next business day. Trust funds may be disbursed only on closing, a written agreement of the parties, an affidavit under §559.217, or a court order – and within ten business days after the transaction is completed or terminated if the agreements don't set a time (subd. 5). A note, bond or other non-depositable item received instead of cash goes immediately to an authorized escrow agent under a written agreement, with a receipt to the buyer (subd. 3).