Agency
In Idaho, 'earnest money dispute' procedures typically provide for:
AIREC arbitrating all earnest money disputes
BThe broker holding the funds in trust pending resolution through signed mutual release, court order, or other proper resolution✓ Correct
CThe broker automatically returning funds to the buyer after 30 days
DThe seller automatically receiving the funds if the buyer defaults
Explanation
When parties dispute earnest money in Idaho, the holding broker must keep the funds in trust until the dispute is resolved — through a signed mutual release from all parties, a court order, or other legally recognized resolution.
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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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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