New Jersey License Law
Which of the following is TRUE about earnest money interpleader in NJ?
AThe broker may keep disputed deposits
BWhen buyer and seller dispute the deposit, the broker may file an interpleader action in court to deposit the funds and let the court decide✓ Correct
CThe NJREC distributes disputed deposits
DThe listing broker automatically wins the dispute
Explanation
When buyer and seller dispute entitlement to the earnest money deposit, the NJ broker holding it in escrow may file an interpleader action to deposit the disputed funds with the court, which then adjudicates the dispute.
People Also Study
Related New Jersey Questions
- In New Jersey, who typically holds the earnest money deposit in escrow during a residential transaction?Escrow & Title
- A NJ real estate broker receives an earnest money check from a buyer. When must the broker deposit it into an escrow account?New Jersey License Law
- Under NJ NJREC regulations, what is the maximum number of days a broker may hold an earnest money deposit before depositing it into escrow after receiving a fully executed contract?New Jersey License Law
- In New Jersey, who typically holds the earnest money deposit during a real estate transaction?Escrow & Title
- An earnest money deposit in a NJ real estate transaction demonstrates the buyer's: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?Contracts
- An 'earnest money' deposit in a NJ real estate transaction demonstrates the buyer's:Contracts
- In NJ, a buyer's deposit check that is returned for insufficient funds after being deposited in the broker's escrow account creates:Contracts
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Math Concepts
State-Specific Concepts
Escrow Disputes
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →