Contracts
In Tennessee, earnest money disputes between buyer and seller are most commonly resolved by:
ATREC adjudicating the dispute
BThe brokers deciding who is entitled to the funds
CCourt action, mediation, or written mutual agreement between the parties✓ Correct
DAutomatic forfeiture to the seller after 30 days
Explanation
Earnest money disputes are resolved by the parties reaching a written agreement on disbursement, through mediation, or by court order. TREC does not adjudicate civil disputes, and the broker cannot unilaterally decide who gets the funds without legal authority.
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