Escrow & TitleIntermediateDelaware Exam
A Delaware broker holds earnest money in the brokerage trust account. When may the broker disburse this money without all parties' consent?
AWhen the listing expires
BPursuant to a written agreement of all parties or a court orderCorrect
CAfter 30 days if no party claims it
DWhen the seller demands it after buyer default
Why Pursuant to a written agreement of all parties or a court order Is Correct
Answer B: Pursuant to a written agreement of all parties or a court order
Earnest money held in escrow may only be disbursed pursuant to the written agreement of all parties or pursuant to a court order. Unilateral disbursement based on one party's claim may expose the broker to liability.
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
Earnest Money
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.
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