A buyer in Florida wants to submit an offer but cannot provide earnest money until their CD matures in one week. The seller is motivated and wants to accept the offer immediately. What is the best course of action?
Correct Answer
C) Submit the offer with a provision that earnest money will be deposited within a specified timeframe
Correct: The offer can include a provision specifying when earnest money will be deposited, giving the buyer time to obtain funds while allowing immediate submission. Why not A: Promissory notes are not acceptable as earnest money. Why not B: Waiting might result in losing the opportunity. Why not D: Offers without earnest money lack consideration and good faith showing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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.
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Previous Question
A Florida real estate broker receives competing offers on a property. Offer A includes $5,000 earnest money, and Offer B includes $10,000 earnest money. Both offers are for the same purchase price with similar terms. How should the broker advise the seller regarding the earnest money amounts?
Next Question
A Florida broker discovers that earnest money deposited by a buyer was obtained through fraudulent means. The transaction has not yet closed, but the seller is unaware of the fraud. What should the broker do?