Under the NC Offer to Purchase, the 'earnest money deposit' is held by:
Why The listing broker or closing attorney in a trust account until closing or earlier termination Is Correct
Answer B: The listing broker or closing attorney in a trust account until closing or earlier termination
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
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.
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- Under the North Carolina Offer to Purchase, the earnest money deposit (EMD) is:Contracts
- A real estate broker in North Carolina who receives earnest money must deposit it into a trust account within:Agency
- Under the NC Offer to Purchase, if a buyer terminates AFTER the due diligence period without a valid contractual reason, what happens to the earnest money deposit?Contracts
- Earnest money held in a broker's trust account in NC belongs to:Escrow & Title
- 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, the earnest money deposit on a residential purchase is typically held by:Contracts
- 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
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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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