All of the following are acceptable methods for holding earnest money deposits in Florida EXCEPT:
Correct Answer
C) The broker's business operating account
Correct: Business operating accounts cannot be used for earnest money deposits - this is commingling. Why not A: Attorney trust accounts are acceptable escrow holders. Why not B: Title company escrow accounts are proper depositories. Why not D: Broker's separate escrow accounts are required depositories.
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- → In Florida, the inspection period is typically:
- → A buyer signs a Florida purchase contract for a condo and learns during the inspection period about a special assessment of $10,000. The seller knew but didn't disclose this. What are the buyer's rights?
- → A buyer and seller in Florida agree to extend the closing date by 10 days. The original contract had a 'time is of the essence' clause. What must they do to make this extension valid?
- → In Florida real estate contracts, what legal principle requires that both parties exchange something of value?
- → A Florida real estate licensee prepares a purchase agreement that includes a financing contingency. The buyer fails to apply for financing within the specified timeframe. What is the legal consequence under Florida contract law?
- → Under Florida law, all of the following would typically survive the closing of a real estate purchase agreement EXCEPT:
- → A Florida purchase contract includes an appraisal contingency stating the property must appraise for at least the purchase price of $350,000. The appraisal comes in at $340,000. What options does the buyer have?
- → A Florida real estate purchase contract includes a financing contingency requiring loan approval within 30 days. On day 28, the buyer hasn't received approval but hasn't notified the seller. What is the buyer's status?
- → In a Florida real estate transaction, the purchase agreement includes a mortgage contingency clause. The buyer receives a loan commitment letter with an interest rate 0.5% higher than specified in the contract. What are the buyer's rights?
- → A Florida real estate broker prepares a purchase agreement that incorrectly states the lot size as 15,000 sq ft when it's actually 12,000 sq ft. The error is discovered after contract execution but before closing. What is the buyer's most likely remedy?
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Buyer Martinez defaults on a purchase contract after the inspection period expires. The seller wants to keep the $8,000 earnest money deposit. Both parties signed a contract with a liquidated damages clause. What should the broker do?
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Agent Thompson receives a personal check for $3,000 earnest money on Friday afternoon. The buyer asks if the check will be deposited immediately. What should Thompson tell the buyer about Florida's deposit requirements?