Broker Williams holds $12,000 in earnest money when both parties dispute its disposition after the buyer's loan is denied. The buyer claims the denial was due to property appraisal issues, while the seller claims it was due to buyer's credit problems. What should Williams do?
Correct Answer
C) Notify FREC of the conflicting demands within 15 business days
Correct: When there are conflicting demands for earnest money, brokers must notify FREC within 15 business days. Why not A: Brokers cannot make legal determinations about contract disputes. Why not B: Loan denial doesn't automatically entitle buyer to funds. Why not D: Cannot hold indefinitely - must follow FREC procedures.
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Previous Question
In a Florida residential contract file in Miami, the buyer paid an initial escrow deposit of $3,000 and an additional deposit of $2,000. The buyer then defaulted, and the contract gives the seller the right to retain the deposits as liquidated damages. How much may the seller retain under that clause?
Next Question
A property sells for $320,000. The earnest money deposit was $6,400, and the buyer is obtaining an 80% loan. At closing, how much additional cash will the buyer need for the down payment (excluding closing costs)?