Which answer most accurately states the Florida rule for deposit receipt?
Correct Answer
A) A buyer default or seller default does not automatically answer who gets the earnest money; the contract and escrow rules must be applied.
A buyer default or seller default does not automatically answer who gets the earnest money; the contract and escrow rules must be applied. This follows Current Florida residential contract practice; Rule 61J2-14.008, F.A.C.; FREC Real Estate Law Book.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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All of the following are required elements of a valid Florida real estate purchase agreement EXCEPT:
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A Florida purchase agreement states a purchase price of $350,000 with the buyer putting down 20%. The contract requires an additional escrow deposit of $5,000 within 10 days. What is the total amount the buyer must provide before closing?