A training instructor in Boone 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
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.
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.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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