A buyer and seller both claim the earnest money after a failed transaction. The broker should:
Correct Answer
B) Interplead the funds with the court
Under North Dakota law, when both parties dispute entitlement to earnest money held in a broker's trust account, the broker should not unilaterally release the funds to either party. The appropriate action is to interplead the funds with the court, allowing a judge to determine the rightful recipient. This protects the broker from liability and ensures a neutral resolution of the dispute.
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