Practice Of Real EstateTrust AccountsMEDIUM
An exam-prep coach in Concord is revising a training memo on disputed earnest money and the clerk-of-court procedure. Which statement is NOT accurate under current North Carolina law?
Correct Answer
D) The broker must first wait for the buyer to sue before the clerk-of-court option exists.
This choice is the inaccurate statement. The other three options describe the current North Carolina rule or guidance more accurately.
Answer Options
A
After the broker deposits disputed funds with the clerk, either claimant may file a special proceeding to determine rightful ownership.B
The disputed-money statute is aimed at earnest money and similar disputed monies, not at residential tenant security deposits handled under different law.C
The broker must wait 90 days after notifying the persons claiming ownership before attempting to deposit disputed funds with the clerk of court.D
The broker must first wait for the buyer to sue before the clerk-of-court option exists.Why 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:
90_days_notice93a_12clerk_of_courtdifficulty_3disputed_earnest_money_and_clerk_of_courtnc_statenc_trust_account_escrow_requirementsnorth_carolinareversescenario_traps_edge_cases_and_enforcementtenant_security_deposit
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