Colorado License Law
A Colorado broker who receives an earnest money check from a buyer, but the check bounces, must:
AA. Keep it private and try to re-deposit later
BB. Immediately notify the parties of the dishonored check and work to have the funds replaced as required by the contract✓ Correct
CC. Terminate the contract automatically
DD. File a police report only
Explanation
When an earnest money check is dishonored (returned for non-sufficient funds), the broker must promptly notify both the buyer and seller. The buyer is typically required to replace the funds promptly per the contract.
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