ContractsEarnest_money_receipt_deposit_and_disbursementEASY
A compliance reviewer in Chapel Hill is answering a client question about earnest money receipt, deposit, and disbursement. Which statement best applies under current North Carolina law?
Correct Answer
B) When the broker receives earnest money in a fiduciary capacity, the Commission trust-money rules govern how it is deposited and handled.
When the broker receives earnest money in a fiduciary capacity, the Commission trust-money rules govern how it is deposited and handled.
Answer Options
A
Earnest money may be held uncashed until the due diligence period ends.B
When the broker receives earnest money in a fiduciary capacity, the Commission trust-money rules govern how it is deposited and handled.C
Earnest money is not trust money unless the transaction closes under current North Carolina rulesD
Earnest money follows only the seller's verbal instructions under current North Carolina rulesWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Related Topics & Key Terms
Key Terms:
deposit_timingdifficulty_2earnest_moneyearnest_money_receipt_deposit_and_disbursementnc_contract_practice_offer_to_purchasenc_statenorth_carolinatiming_forms_exceptions_and_authoritytrust_money
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