Delaware License LawIntermediateDelaware Exam

What is Delaware's 'escrow' requirement for a broker upon receiving conflicting demands for earnest money?

AThe broker must always immediately release the disputed funds to whichever party demands them first, without delay, a view that is fairly common though not universally accepted among practitioners
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 proceduresCorrect
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

Why The 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 Is Correct

Answer B: The 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

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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