DRE & Licensing
What must a DRE licensee do when they receive a dispute over earnest money between a buyer and seller?
AReturn funds to whoever demands them first
BRetain funds in trust until the dispute is resolved or interplead funds with the court✓ Correct
CForward funds to the listing broker for safekeeping
DDistribute funds equally between buyer and seller
Explanation
When a dispute arises over earnest money deposits, the broker must keep the funds in trust and may not release them without mutual written consent from both parties, a court order, or by filing an interpleader action with the court.
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