Contracts

An interpleader action is used by a broker when:

ATwo offers arrive simultaneously
BThere is a dispute over earnest money between buyer and seller, and the broker deposits the funds with the court✓ Correct
CThe seller wants to cancel the listing
DThe buyer requests a contract extension

Explanation

Interpleader allows a broker who holds disputed earnest money to deposit the funds with the court and let the court decide who is entitled to them, protecting the broker from liability to both parties.

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