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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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?
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A Florida buyer submits a contract with a personal check for earnest money on Friday afternoon. The check bounces on Monday morning before the seller accepts the offer. The seller wants to accept the contract anyway and demands the buyer provide good funds. What is the legal status of this situation?