Escrow & Title
In Florida, which of the following is a method for resolving escrow disputes between a buyer and seller?
AThe broker must immediately release funds to the seller
BMediation, arbitration, interpleader action, or FREC escrow disbursement order✓ Correct
CThe buyer always receives the deposit back
DThe escrow funds must remain frozen indefinitely
Explanation
Florida law provides four methods for brokers to resolve escrow disputes: mediation, arbitration, filing an interpleader action with a court, or requesting an escrow disbursement order from FREC.
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Key Terms to Know
Escrow
A 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).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
State-Specific Concepts
FREC Regulation
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