An office manager in Carrboro is preparing an exam-prep note on earnest money receipt, deposit, and disbursement. Which statement best applies under current North Carolina law?
Correct Answer
D) Disbursement of earnest money before a dispute is resolved must follow the contract, written release, court order, or authorized clerk-of-court procedure as applicable.
Disbursement of earnest money before a dispute is resolved must follow the contract, written release, court order, or authorized clerk-of-court procedure as applicable.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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.
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