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Practice Of Real EstateTrust AccountsMEDIUM

An office manager in North Carolina is auditing the firm's approach to disputed earnest money and the clerk-of-court procedure. Which statement is NOT accurate under current North Carolina law?

Correct Answer

B) A dispute lets the broker release the money to whichever side complains first under current North Carolina rules

This choice is the inaccurate statement. The other three options describe the current North Carolina rule or guidance more accurately.

Answer Options
A
Under G.S. 93A-12, disputed earnest money may be deposited with the clerk of court in the county where the property is located after proper notice and the required waiting period.
B
A dispute lets the broker release the money to whichever side complains first under current North Carolina rules
C
The clerk-of-court procedure does not replace the broker's duty to keep the disputed money safe in trust until one of the lawful release mechanisms is available.
D
The broker must wait 90 days after notifying the persons claiming ownership before attempting to deposit disputed funds with the clerk of court.

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Related Topics & Key Terms

Key Terms:

clerk_of_courtcore_rules_and_definitionsdifficulty_3disputed_earnest_money_and_clerk_of_courtdisputed_fundsnc_statenc_trust_account_escrow_requirementsnorth_carolinareversetrust_accountwritten_release
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