Delaware License Law
What is Delaware's 'escrow' requirement for a broker upon receiving conflicting demands for earnest money?
AThe broker must immediately release the funds to the party demanding them
BThe broker must hold the disputed funds in escrow and may: seek written agreement from both parties, file an interpleader action with the court, or follow the DREC's dispute resolution procedures✓ Correct
CThe broker must give the funds to the seller as the superior party
DThe broker must return the funds to the buyer as the depositing party
Explanation
When a broker receives conflicting demands for earnest money from buyer and seller, Delaware law requires the broker to maintain the funds in escrow and not release to either party without authorization. Options include: obtaining written mutual agreement from both parties, filing an interpleader action to let a court decide, or following Delaware Real Estate Commission dispute resolution procedures.
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Key Terms to Know
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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Math Concepts
State-Specific Concepts
DRE Regulation
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