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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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
More Real Estate Contracts Questions
All of the following are required elements of a valid Florida real estate purchase contract EXCEPT:
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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?
- → 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:
- → Broker Sarah receives a $5,000 earnest money deposit from buyer Johnson for a property purchase. The contract states the deposit should be held in escrow. According to Florida law, what must Sarah do with this deposit?
- → A buyer in Fort Lauderdale breaches a residential purchase contract by refusing to close without legal justification. The contract contains a liquidated damages clause equal to the earnest money deposit of $5,000. What is the seller's most likely remedy?
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- → Under Florida law, a real estate purchase contract may be rescinded for all of the following reasons EXCEPT:
- → Under Florida real estate law, all of the following are acceptable remedies for contract breach EXCEPT:
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Previous Question
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?