Alaska License LawIntermediateAlaska Exam
Under Alaska license law, a licensee who receives a check as earnest money from a buyer should:
AHold the uncashed check until closing
BMake a copy and return the original to the buyer
CFollow the written instructions in the purchase agreement regarding depositCorrect
DImmediately cash it and hold the funds in petty cash, under standard practice
Why Follow the written instructions in the purchase agreement regarding deposit Is Correct
Answer C: Follow the written instructions in the purchase agreement regarding deposit
Handling of earnest money must follow the written instructions in the purchase agreement. The agreement typically specifies whether the check is to be held uncashed, deposited immediately, or deposited upon acceptance.
Key Alaska License Law Terms in This Question
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Key Terms to Know
Earnest Money
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.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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