Contracts
A NJ buyer's offer is accompanied by an earnest money deposit check payable to the listing brokerage. Before the offer is accepted, what should happen to the check?
AIt should be deposited immediately upon receipt
BIt should be held uncashed until the offer is accepted, then deposited within three business days✓ Correct
CIt should be returned to the buyer
DIt should be forwarded directly to the seller
Explanation
Standard NJ practice is to hold the earnest money check uncashed until the offer is accepted. Once a contract is formed, the broker must deposit the funds into escrow within three business days.
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