In the TREC One to Four Family Residential Contract, Paragraph 5 addresses earnest money. Where must the earnest money be deposited according to the contract?
Correct Answer
B) In the escrow account of the title company or escrow agent named in the contract
Under Paragraph 5, earnest money must be deposited with the escrow agent named in the contract, typically a title company. The escrow agent holds the funds in a trust or escrow account until closing or disposition as agreed.
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Previous Question
Under the TREC One to Four Family Residential Contract, Paragraph 6B addresses the buyer's obligation regarding the survey. The contract allows the buyer to object to items shown on the survey within a specified timeframe. If the buyer fails to object within that timeframe, the buyer:
Next Question
Agent Marshall is completing the TREC One to Four Family Residential Contract for a buyer purchasing a home in a subdivision with deed restrictions. Paragraph 6D addresses deed restrictions. If the buyer discovers that the deed restrictions prohibit operating a home-based business, which the buyer planned to do, the buyer may: