Contracts
A Minnesota purchase agreement contains an earnest money clause of $10,000. If both buyer and seller sign a mutual release, the earnest money is:
AAutomatically returned to the buyer by the closing agent
BReleased according to the terms of the mutual release signed by both parties✓ Correct
CHeld until a court orders its release
DForfeited to the real estate broker
Explanation
A mutual release is a written agreement signed by both buyer and seller directing how earnest money is to be disbursed. Minnesota closing agents rely on written mutual releases to release earnest money without liability.
Related Minnesota Contracts Questions
- A Minnesota real estate purchase agreement is contingent on the buyer selling their current home within 45 days. This is called a:
- The parol evidence rule prevents a party to a written contract from:
- In Minnesota, which of the following constitutes 'acceptance' in a real estate contract context?
- In Minnesota, an executed contract means:
- In Minnesota, a purchase agreement becomes legally binding when:
- In Minnesota, specific performance is a remedy for breach of a real estate contract that allows the non-breaching party to:
- The Minnesota Seller's Property Disclosure Statement is required for:
- In Minnesota, the statute of frauds requires real estate contracts to be:
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →