A seller’s broker receives and presents a purchase offer that is accepted by the seller. The seller then requests the broker give them the buyer’s deposit check. The broker needs to:
Correct Answer
C) obtain the written consent of the buyer before releasing the check to the seller.
Trust funds are not the seller's to take on acceptance. The broker holds the deposit for both parties, and releasing it early requires the written consent of the buyer who put it up. Other choices: depositing it into the trust account is required, but it does not by itself entitle the seller to the money; a counteroffer is not the instrument for releasing funds on a contract already accepted; and the seller's acknowledgement of receipt records a release that should not have happened without the buyer's consent.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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