A buyer and seller have a contract dispute over a $15,000 earnest money deposit currently held in Broker Angela's trust account. Both parties are claiming the funds, and neither has agreed to release them. Under Virginia VREB regulations, what is Angela's most appropriate course of action?
Correct Answer
C) Continue to hold the funds in the trust account and seek a written agreement from both parties or pursue interpleader action
Under 18 VAC 135-20-185 and Virginia license law, when there is a bona fide dispute over earnest money, the broker must continue to hold the funds in the trust account until the dispute is resolved. The broker should seek a written release agreement from all parties or, if no agreement can be reached, may file an interpleader action with the court to have a judge determine the proper disbursement. The broker must not unilaterally release funds to either party.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
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