ContractsIntermediateArizona Exam

In Arizona, when a buyer submits an earnest money check but instructs the broker to hold it without cashing it, the broker should:

AHold the check uncashed per buyer's instructionsCorrect
BDeposit it immediately regardless of instructions
CReturn it to the buyer
DConsult the ADRE before acting

Why Hold the check uncashed per buyer's instructions Is Correct

Answer A: Hold the check uncashed per buyer's instructions

In Arizona, if both parties agree and the buyer requests the broker to hold a check without depositing it, the broker may do so. However, the broker must disclose this arrangement to the seller.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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