A seller’s broker receives and presents a purchase offer that is accepted by the seller. The seller then requests the broker give them the buyer’s deposit check. The broker needs to:
Question & Answer
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first deposit the check into the broker’s trust account before giving the deposit funds to the seller.
Option A is incorrect because while brokers must deposit checks into a trust account, they don't need to do this before releasing funds to the seller if they have proper consent. The sequence can be direct with proper documentation.
write a counteroffer requesting the release of the deposit funds to the seller.
Option B is incorrect because the broker shouldn't write a counteroffer. The offer has already been accepted, so the broker's role is to facilitate the transaction, not create new terms.
obtain the written consent of the buyer before releasing the check to the seller.
obtain written acknowledgement from the seller they have received the funds.
Option D is incorrect because while obtaining written acknowledgement is good practice, it doesn't address the primary requirement of obtaining the buyer's consent before releasing their funds.
Why is this correct?
Option C is correct because California law requires the broker to obtain written consent from all parties before releasing earnest money deposits. This protects the buyer's interests and ensures proper handling of funds, even after the offer is accepted.
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