Contracts
In Iowa, what happens if a buyer's earnest money check bounces (is dishonored by the bank)?
AThe contract is automatically void
BThe seller must accept another form of payment
CThe broker must immediately notify the seller; the contract may be voidable for lack of consideration✓ Correct
DThe broker deposits the check again without notification
Explanation
A dishonored earnest money check may indicate a lack of consideration, potentially making the contract voidable. The broker must promptly notify the seller of the failed payment.
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