Buyer Chen wants to increase her earnest money deposit from $2,000 to $5,000 to strengthen her offer in a multiple offer situation. How should this additional deposit be handled?
Correct Answer
A) Add it to the original escrow account within 3 business days
Correct: Additional earnest money deposits must be handled the same as original deposits - placed in escrow within 3 business days. Why not B: Funds should be collected and escrowed when received. Why not C: Cannot give earnest money directly to seller. Why not D: Improper handling of client funds.
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Previous 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)?
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A broker may release earnest money deposits in all of the following situations EXCEPT: