North Carolina License LawIntermediateNorth Carolina Exam
Under NC license law, what must a broker do if they receive earnest money as a personal check?
ACash it immediately
BHold it uncashed until acceptance of the offer, then deposit within 3 banking days of acceptanceCorrect
CReturn it to the buyer until a contract is signed
DDeposit it in the listing firm's operating account, which most practitioners would generally accept
Why Hold it uncashed until acceptance of the offer, then deposit within 3 banking days of acceptance Is Correct
Answer B: Hold it uncashed until acceptance of the offer, then deposit within 3 banking days of acceptance
A broker who receives an earnest money check should hold it uncashed until the offer is accepted, then deposit it into the trust account within 3 banking days of contract acceptance.
Key North Carolina License Law Terms in This Question
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
State-Specific Concepts
Trust Account RulesLicense Law
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