Under Ohio law, when a buyer defaults on a purchase contract and forfeits the earnest money deposit, who directs the broker on how to disburse the forfeited funds from the trust account?
Correct Answer
B) The disbursement is directed by the terms of the purchase contract and applicable Ohio law
Under Ohio law, the disbursement of forfeited earnest money is governed by the terms of the purchase contract and applicable law. The broker follows the contract provisions regarding what happens to the deposit upon buyer default.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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