Contracts
In Michigan, if a buyer and seller cannot agree on the disbursement of earnest money after a contract falls through, the broker should:
AKeep the money until both parties agree
BReturn the money to the buyer immediately
CInterplead the funds with the court or follow LARA guidance while keeping money in trust✓ Correct
DGive the money to whoever called the broker first
Explanation
When parties dispute earnest money disbursement in Michigan, the broker must keep the funds in trust until both parties agree or a court orders disbursement. Interpleader (paying the disputed funds to the court) is an appropriate remedy when parties cannot agree.
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