A provisional broker in Concord is updating the policy manual on earnest money receipt, deposit, and disbursement. Which statement best applies under current North Carolina law?
Correct Answer
C) Earnest money is a deposit that may be held by an escrow agent and is distinct from the due diligence fee paid directly to the seller.
Earnest money is a deposit that may be held by an escrow agent and is distinct from the due diligence fee paid directly to the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
More Contracts Questions
A Rhode Island salesperson asks about an owner is about to sign a purchase and sale agreement. What is the best answer?
For the Rhode Island state portion, how should a candidate analyze a seller asks the principal broker about commission split or distribution?
A Rhode Island principal broker reviews a licensee wants to enter a net listing contract. Which answer follows Rhode Island law?
A Rhode Island principal broker reviews a licensee takes a listing agreement. Which answer follows Rhode Island law?
Which Rhode Island rule applies when parties sign a listing, sale, lease, or other real estate contract?
- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
- → In Rhode Island, a licensee submits a written purchase or lease offer to an owner. Which statement is correct?
- → A Rhode Island salesperson asks about a listing agreement or contract for sale is prepared. What is the best answer?
- → Which Rhode Island rule applies when a listing agreement lists property with a multiple listing service?
- → A Rhode Island licensee encounters a listing agreement lets the principal broker retain a portion of deposit money upon buyer default. What should the licensee remember?
- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
- → A Hawaii broker asks a salesperson about a deed or lease is not recorded. Which answer follows Hawaii law?
- → For the Hawaii salesperson state portion, interest accrues on a trust-account deposit. Which statement is correct?
- → In a Hawaii real estate transaction, trust funds are placed with a neutral escrow depository for Hawaii property. What should the licensee remember?
- → For the Hawaii salesperson state portion, a licensee secures a party signature on a Hawaii listing or purchase contract. Which statement is correct?
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