Contracts
A Minnesota buyer makes an offer with a $5,000 earnest money check. The check is made payable to the listing brokerage. If the seller rejects the offer, the earnest money:
AIs forfeited to the listing broker for their time
BIs immediately returned to the buyer since no contract was formed✓ Correct
CMust be held for 10 days before return
DBecomes the seller's property automatically
Explanation
When a seller rejects an offer, no contract is formed and the earnest money is immediately returned to the buyer. The earnest money is only at risk once a purchase agreement is fully executed. Until then, it belongs entirely to the buyer. Minnesota brokers must promptly return earnest money when offers are rejected.
Related Minnesota Contracts Questions
- Which clause in a Minnesota purchase agreement allows the buyer to back out if they cannot obtain financing?
- A purchase agreement that contains a financing contingency protects the buyer by:
- In Minnesota, a buyer who defaults on a purchase agreement may face which consequences?
- In Minnesota, a 'backup offer' on a property under contract is typically structured as:
- In Minnesota, which of the following provisions in a purchase agreement specifically addresses who is responsible if the property is damaged or destroyed between signing and closing?
- In Minnesota, a purchase agreement void from the beginning due to lack of capacity by one party (such as a minor) is considered:
- A Minnesota property seller accepts a buyer's offer but then receives a backup offer at a higher price. Can the seller cancel the first offer to accept the second?
- In Minnesota, a buyer's inspection contingency typically allows the buyer to:
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →