A provisional broker in Wilmington is preparing an exam-prep note on disputed earnest money and the clerk-of-court procedure. Which statement best applies under current North Carolina law?
Correct Answer
D) If earnest money becomes disputed, the broker must generally continue to hold it until the parties agree in writing, a court orders disbursement, or the clerk-of-court procedure is properly used.
If earnest money becomes disputed, the broker must generally continue to hold it until the parties agree in writing, a court orders disbursement, or the clerk-of-court procedure is properly used.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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