When a dispute arises between a buyer and seller over earnest money held in escrow in Delaware, the broker should:
Correct Answer
B) File an interpleader action with the court to let a judge determine the rightful recipient
When a dispute arises over earnest money, a Delaware broker must not unilaterally release the funds to either party, as doing so could expose the broker to liability. The appropriate course of action is to file an interpleader action with the court, which allows the broker to deposit the disputed funds with the court and have a judge determine the rightful recipient. This protects the broker from liability and ensures a neutral resolution of the dispute.
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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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