hard · National Real Estate Exam agency
A broker is holding an earnest money deposit for a transaction that has fallen through. Both the buyer and the seller claim they are entitled to the funds. The broker should:
- Apply the disputed funds directly to the broker's own unpaid commission balance.
- Keep the funds until both parties sign a release or a court issues an order.
- Return the earnest money to the buyer immediately since the deal didn't close.
- Release the disputed money to the seller alone to protect the client's interest.
Sign up free to see the explanation and track your rank →
More National Real Estate Exam agency practice
- If a broker's trust account contains earnest money for ten different transactions, and the
- An agency relationship that is created by a principal's actions leading a third party to r
- An agent's power to bind a principal to a contract is known as their:
- If a broker acts as a transaction coordinator (facilitator) and does not represent either
- If a person acts as an agent without prior authorization and the principal later accepts t
- If a seller instructs an agent to hide a known material defect in the property, the agent
- In a standard real estate transaction, to whom does the agent owe the full range of fiduci
- In which type of agency creation does the principal's silence or failure to object play a