Broker Taylor receives conflicting demands for a $15,000 earnest money deposit. She notifies FREC but receives no response after 30 days. The buyer threatens legal action if funds aren't released immediately. What should Taylor do?
Correct Answer
C) Continue holding funds and may request FREC to issue an escrow disbursement order
Correct: After notifying FREC of conflicting demands, broker should continue holding funds and may request an escrow disbursement order for resolution. Why not A: Cannot release due to threats - must follow proper procedures. Why not B: Cannot determine reasonableness and release unilaterally. Why not D: Court deposit is possible but requesting FREC order is the preferred next step.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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