Florida License Law
When a Florida broker receives an earnest money check, it must be written to:
AThe listing broker personally
BThe broker's brokerage name as registered with DBPR, or a title company/escrow agent as designated✓ Correct
CThe seller directly
DFREC's Recovery Fund
Explanation
Earnest money should be made payable to the brokerage (as registered with DBPR) or to the designated escrow agent/title company as specified in the contract. It should not be made payable to an individual agent.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
State-Specific Concepts
FREC Regulation
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