A buyer's agent is completing an AAR Purchase Contract and needs to specify how earnest money will be held. What are the standard options provided in AAR forms for earnest money depositories?
Correct Answer
D) Either the listing brokerage, selling brokerage, or a neutral escrow company
AAR forms typically provide options for earnest money to be held by the listing brokerage, selling brokerage, or a neutral escrow company. Limiting to only listing brokerage (A) restricts legitimate options. Title company holding (C) is possible but not required. Direct seller holding (D) is not standard practice and creates potential conflicts.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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At a brokerage meeting in Chandler, a test-prep tutor presents an AAR contract deadline as though it were a statewide statute that applies in every Arizona transaction regardless of form. Which statement is most accurate under current Arizona rules?
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An agent uses an AAR Buyer Representation Agreement with a 6-month term. After 3 months, the buyer wants to terminate the agreement to work with another agent. The original agent has shown 15 properties and spent significant time with the buyer. What protection does the AAR form typically provide the original agent?