Under TREC rules, a broker discovers that a client's earnest money check has bounced (insufficient funds). Under TREC rules, what is the broker's obligation?
Correct Answer
B) The broker should promptly notify all parties to the transaction that the earnest money check was returned for insufficient funds
Under TREC rules, the broker has an obligation to promptly notify all parties when an earnest money check bounces. All parties need to know that the earnest money has not been funded, as this is material information that affects the transaction.
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