hard · National Real Estate Exam agency
A transaction fails, and the buyer and seller each submit a written, signed demand to the broker for the same escrowed earnest money, but the demands conflict and neither party will sign a mutual release. The broker cannot get both signatures and wants to close out the file.
The broker's proper next step is to:
- Split the disputed deposit evenly between the buyer and the seller
- File an interpleader action and deposit the funds with the court
- Hold the funds indefinitely in the trust account and take no action
- Honor whichever signed demand the broker received first in time
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