All of the following are acceptable forms of earnest money deposits in Florida EXCEPT:
Correct Answer
C) Promissory note
Correct: Promissory notes are NOT acceptable as earnest money deposits in Florida as they do not represent actual funds. Why not A: Personal checks are acceptable earnest money deposits. Why not B: Cashier's checks are acceptable and preferred earnest money deposits. Why not D: Money orders are acceptable earnest money deposits.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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Previous Question
A buyer in Florida puts down earnest money equal to 2% of the purchase price on a $350,000 home. How much earnest money did the buyer deposit?
Next Question
A prospective Florida buyer gives the seller a personal check described as earnest money. The check is dishonored through no fault of the seller. In an action by another person seeking a share of a forfeited deposit or down payment, how does Florida Statutes § 715.02 treat that dishonored check?