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H agrees to purchase V's real estate for $230,000 and deposits $6,900 earnest money with Broker L. However, V is unable to clear the title to the property, and H demands the return of his earnest money as provided in the purchase contract. Broker L should:A) Deduct his commission and return the balance to H.B) Deduct his commission and give the balance to V.C) Return the entire amount to H.D) Give the entire amount to V to dispose of as he decides.
The correct answer is "C - Return the entire amount to H. " Brokers and salespeople only earn their commission when a transaction closes. Since the transaction was never completed, no commission is owed. Additionally, H is entitled to have all his earnest money returned since it was the seller, not he, who defaulted on the contract.
A buyer makes an earnest money deposit of $1,500 on a $15,000 property and then withdraws her offer before the seller can accept it. The broker is responsible for disposing of the earnest money by:A) turning it over to the seller.B) deducting the commission and giving the balance to the seller.C) returning it to the buyer.D) depositing it in his or her trust account.
The law that requires real estate contracts to be in writing to be enforceable is the:A) law of descent and distribution.B) statute of frauds.C) parole evidence rule.D) statute of limitations.
A(n) _______ is when an owner takes his property off the market for a definite period of time in exchange for some consideration, but he grants the right to purchase the property within that period for a stated price.A) optionB) contract of saleC) right of first refusalD) installment agreement
A breach of contract is a refusal or a failure to comply with the terms of the contract. If the seller breaches the purchase contract, the buyer may do all of the following EXCEPT:A) Sue the seller for specific performance.B) Rescind the contract and recover the earnest money.C) Sue the seller for damages.D) Sue the broker for non-performance.
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