Where must earnest money be deposited in a Delaware real estate transaction?
Correct Answer
B) Into the broker's separate escrow or trust account
Under Delaware law and Delaware Real Estate Commission regulations, brokers must deposit earnest money into a separate escrow or trust account, kept apart from the broker's operating funds. The deposit must be made in a timely manner as specified by Commission regulations. Commingling earnest money with personal or business funds is a violation that can result in disciplinary action, including license suspension or revocation.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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