If a listing expires without a sale, earnest money that was deposited should be:
Why If no contract was ever formed, returned to any depositing party; if a contract was formed and failed, per agreement terms Is Correct
Answer C: If no contract was ever formed, returned to any depositing party; if a contract was formed and failed, per agreement 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.
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- In a purchase transaction in Alabama, the earnest money deposited by the buyer is typically applied at closing toward:Finance
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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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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