hard · National Real Estate Exam
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 funds to the broker's unpaid commission.
- Keep the funds until both parties sign a release or a court issues an order.
- Return the money to the buyer because the deal didn't close.
- Give the money to the seller to protect the client's interest.
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