Under the TREC contract, if the escrow agent receives conflicting demands for the earnest money from both buyer and seller, the escrow agent may:
Correct Answer
B) Interplead the funds with the court and let the court determine the proper disposition
When the escrow agent receives conflicting demands, the agent may interplead the funds—deposit them with the court and ask the court to determine the proper disposition. This protects the escrow agent from liability to either party.
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Related Topics & Key Terms
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Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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.
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