Broker Green holds $20,000 in earnest money for a commercial transaction. The buyer wants to inspect the property but needs to travel out of state, delaying closing by 60 days. The seller agrees to the extension. What should Green do with the earnest money?
Correct Answer
B) Continue holding the funds in escrow until closing or other authorized disbursement
The broker should continue holding the funds in escrow as the contract extension doesn't change the escrow arrangement. Option A unnecessarily returns funds that should remain in escrow. Option C transfers funds without proper authorization. Option D may violate escrow requirements depending on the type of investment.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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