An Ohio broker receives earnest money and properly deposits it. The buyer later asks the broker to refund the earnest money before the contingency deadline, claiming personal financial hardship. The seller has not agreed to release the funds. Under Ohio law, can the broker refund the money?
Correct Answer
A) No, the broker cannot release funds without the seller's written consent or a proper contract basis
Under ORC §4735.24, the broker cannot release earnest money without proper authorization. If the buyer has not invoked a contingency and the seller has not agreed to a release, the broker must hold the funds. The buyer's personal financial situation does not override the contractual obligations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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