Escrow & Title
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:
AReturn the money to the buyer automatically
BHold the funds until the parties resolve the dispute or a court orders disbursement✓ Correct
CTransfer the money to the NCREC
DDisburse 50% to each party
Explanation
When the parties cannot agree on earnest money release, the broker must continue to hold the funds in trust until the dispute is resolved by a written release agreement from both parties, a court order, or arbitration.
Related North Carolina Escrow & Title Questions
- In NC, 'marketable title' means:
- In NC, the seller's attorney typically handles which task at closing?
- North Carolina is an 'attorney closing state,' which means:
- Which of the following would appear as a buyer's debit on a closing disclosure?
- In NC, a 'Closing Disclosure' must be delivered to the buyer at least how many business days before consummation of the loan?
- In North Carolina, trust account funds (earnest money) must be deposited within:
- ALTA (American Land Title Association) title insurance policies are:
- The trustee in a North Carolina deed of trust holds:
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