Broker Rachel operates a Virginia brokerage. A contract falls through, and both the buyer and seller agree in writing that the $20,000 earnest money should be returned to the buyer. However, before Rachel can disburse the funds, the seller's attorney contacts Rachel claiming the seller is now disputing the release. The written mutual release has already been signed by both principals. What should Rachel do?
Correct Answer
B) Disburse the funds to the buyer based on the signed written mutual release from both principals
Under 18 VAC 135-20-185 and Virginia license law, a broker is authorized to disburse trust funds when all parties to the transaction have provided a written mutual release directing disbursement. Once a valid written release signed by both the buyer and seller is in hand, Rachel has proper authority to disburse the funds to the buyer. The seller's attorney's subsequent objection does not override the principals' signed written agreement; the attorney does not have independent authority to countermand the seller's own signed release.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
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