Earnest money held in a broker's trust account in NC belongs to:
Why The principals per the contract terms, not the broker Is Correct
Answer C: The principals per the contract terms, not the broker
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
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Related North Carolina Questions
- In North Carolina, trust account funds (earnest money) must be deposited within:Escrow & Title
- In North Carolina, earnest money must be deposited into the broker's trust account within:Contracts
- A NC broker who deposits a client's earnest money check into their personal account instead of a trust account has committed:North Carolina License Law
- A real estate broker in North Carolina who receives earnest money must deposit it into a trust account within:Agency
- A NC broker who receives earnest money must deposit it in a trust account within 3 banking days of:North Carolina License Law
- In NC, when both buyer and seller refuse to release earnest money held in trust following a failed transaction, the broker's appropriate action is:Escrow & Title
- Under the NC Offer to Purchase, the 'earnest money deposit' is held by:Contracts
- Under NC license law, what must a broker do if they receive earnest money as a personal check?North Carolina License Law
Key Terms to Know
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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
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