If a buyer instructs the broker to hold their uncashed check until offer acceptance, the broker should:
Why Hold the check uncashed as instructed and disclose this to the seller Is Correct
Answer B: Hold the check uncashed as instructed and disclose this to the seller
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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Related California Questions
- A broker receives an earnest money check made out to the seller. The buyer instructs the broker to hold the check uncashed until offer acceptance. The broker MUST:Trust Funds
- If a buyer's check for earnest money is made payable to the listing broker, and the buyer instructs the broker to hold the check uncashed until the offer is accepted, the broker should:Trust Funds
- What must a broker do when they receive a buyer's earnest money deposit check with instructions to hold it uncashed pending acceptance?Trust Funds
- If a buyer's offer is rejected and they had deposited earnest money, the broker must:Trust Funds
Key Terms to Know
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
State-Specific Concepts
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