Agency
When a Texas broker receives an earnest money deposit but the buyer's and seller's contracts specify different escrow agents, the broker should:
AKeep the money in their trust account
BImmediately forward the funds to the correct escrow agent as specified in the contract✓ Correct
CAsk TREC to resolve the confusion
DReturn the money to the buyer until the conflict is resolved
Explanation
If the contract specifies a particular escrow agent (typically the title company), the broker should promptly forward the earnest money to that designated escrow agent. Holding funds longer than necessary creates commingling risk and delays. The broker should confirm the escrow agent's wiring instructions and follow TREC requirements for prompt deposit.
Related Texas Agency Questions
- A Texas listing agent who represents the seller has a duty to present all offers to their client. If the seller instructs the agent to only present offers above $300,000, the agent should:
- In Texas, 'ostensible agency' (or apparent authority) exists when:
- Under Texas law, a sales agent who acts WITHOUT a written buyer representation agreement is presumed to represent:
- When a Texas broker acts as an intermediary, they may NOT:
- An agent in Texas who represents a buyer but receives a referral fee from the seller's contractor for recommending the contractor for post-closing work must:
- The Texas IABS (Information About Brokerage Services) notice must be provided in which scenario?
- A Texas agent receives an offer to present to their seller client. The offer is significantly below market value but has no contingencies. The agent should:
- Under Texas law, the Information About Brokerage Services (IABS) notice must be provided:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →