A closing-file reviewer in Concord is answering a client question about earnest money receipt, deposit, and disbursement. Which statement best applies under current North Carolina law?
Correct Answer
B) At closing, earnest money is typically credited according to the contract and settlement calculations rather than disappearing from the transaction ledger.
At closing, earnest money is typically credited according to the contract and settlement calculations rather than disappearing from the transaction ledger.
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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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- → 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?
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