Under the TREC One to Four Family Residential Contract, where must the earnest money be deposited?
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 (typically a title company) named in the contract. The funds are held in the escrow agent's trust or escrow account until closing or disposition as agreed.
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Related Topics & Key Terms
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Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
More Promulgated Contract Forms Questions
In Texas, title insurance rates are:
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Under the TREC contract, a TREC Amendment is effective when:
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