A broker receives an earnest money check from a buyer but the seller has not yet accepted the offer. The broker should:
Why Hold the check uncashed or deposit it per written instructions, pending acceptance or per the contract terms Is Correct
Answer C: Hold the check uncashed or deposit it per written instructions, pending acceptance or per the contract terms
Exam Tip: Trust Funds
Trust fund questions test the rules for handling client money. Know the deadlines for depositing trust funds, what constitutes commingling vs. conversion, and the penalties for violations.
Key Trust Funds Terms in This Question
People Also Study
Related Alabama Questions
- A salesperson in Alabama receives an earnest money deposit. What must they do with it?Alabama License Law
- Under AREC rules, how quickly must a broker deposit earnest money or other trust funds after receipt?Trust Funds
- If a buyer's offer is accepted by the seller and the buyer's check for earnest money is returned by the bank as NSF (non-sufficient funds), the broker should:Trust Funds
- When a broker receives a post-dated check as earnest money, the best practice is to:Trust Funds
- A buyer and seller disagree about who is entitled to the earnest money after a contract falls through. What should the Alabama broker do?Trust Funds
- A buyer's offer is accepted by the seller. Before the buyer receives notice of acceptance, the buyer calls to revoke the offer. Which statement is CORRECT?Contracts
- An Alabama agent who receives a higher offer after already presenting and having accepted a lower offer should:Agency
- In Alabama, earnest money is held by the broker in a:Contracts
Key Terms to Know
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Math Concepts
State-Specific Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →