Contracts

In Michigan, an 'earnest money release' form is used when:

AThe closing occurs on schedule
BThe parties agree to disburse earnest money after a contract is terminated✓ Correct
CThe broker releases their commission
DAn agent transfers their listing to another broker

Explanation

An earnest money release form documents the mutual agreement of buyer and seller (and broker) on how to disburse the earnest money deposit when a transaction is terminated, ensuring proper accounting and releasing the broker from liability.

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