Contracts
Under Georgia law, who has the authority to release earnest money when a transaction falls through?
AThe listing broker unilaterally
BThe closing attorney unilaterally
CBoth buyer and seller must agree in writing, or a court order must be obtained✓ Correct
DGREC determines earnest money disputes
Explanation
When there is a dispute over earnest money, the broker (or closing attorney) holding the funds must have written agreement from both parties or a court order before releasing the funds, to avoid potential liability.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
State-Specific Concepts
Escrow DisputesGREC Regulation
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