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:
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.
Key Trust Funds Terms in This Question
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
People Also Study
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
- 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
- A broker receives a check as earnest money. Under California law, the broker must deposit it into the trust account within:Trust Funds
- If a buyer instructs the broker to hold their uncashed check until offer acceptance, the broker should:Trust Funds
- Real estate trust funds must be deposited into the trust account within how many business days of receipt?DRE & Licensing
- In California, a landlord must return a security deposit within how many days of a tenant moving out?Property Management
- In California, a 'designated agency' arrangement allows a broker to:Agency
- A real estate licensee who fails to disclose a known environmental hazard on a listing may face liability under which California law?Environmental
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.
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.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Math Concepts
State-Specific Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →