Louisiana earnest money deposits must be:
Correct Answer
B) Deposited in the broker's escrow account within the time specified in the contract
Louisiana requires brokers to deposit earnest money into an escrow/trust account as specified in the purchase agreement. Failure to properly handle escrow funds is a violation of LREC regulations.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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