Contracts
In Illinois, if a buyer's earnest money check is returned for insufficient funds, the broker should:
AImmediately terminate the contract and return all documents
BNotify the buyer and request that valid funds be provided; the seller should also be notified of the NSF situation✓ Correct
CDeposit the check again without telling anyone
DFile a complaint with IDFPR against the buyer
Explanation
If an earnest money check returns for non-sufficient funds (NSF), the broker should promptly notify the buyer and request that valid, guaranteed funds (certified check, wire transfer) be provided. The seller should also be informed since this may constitute a default condition depending on the contract terms.
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