Alaska License Law
When a buyer terminates a purchase agreement without a valid contractual reason and forfeits earnest money, the broker:
AMay immediately disburse the funds to the seller
BMust hold the funds in trust until directed by all parties or a court order✓ Correct
CMust return the funds to the buyer within 5 days
DMay deduct the commission from the forfeited deposit
Explanation
When there is a dispute over earnest money, the Alaska broker must continue to hold the funds in trust until there is written agreement from all parties about disbursement or a court order directing distribution. Brokers cannot unilaterally decide the outcome of a disputed deposit.
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