When a dispute arises over earnest money and the parties cannot reach an agreement, the broker should:
Correct Answer
B) File an interpleader action with the court
When parties dispute earnest money and cannot reach an agreement, the broker should not unilaterally release funds to either party. Instead, the broker may file an interpleader action, asking the court to determine the rightful recipient. This protects the broker from liability and ensures the dispute is resolved through a neutral legal process.
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