Under TREC rules, a broker who holds disputed earnest money must not release the funds to either party. If the dispute cannot be resolved through agreement, what option does the broker have?
Correct Answer
D) The broker may interplead the funds by depositing them with the court and requesting that the court determine entitlement
When parties cannot agree on the disposition of disputed earnest money, the broker may file an interpleader action with the court. This deposits the funds with the court and asks the court to determine which party is entitled to the money, relieving the broker of the dispute.
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