New Jersey Real Estate Exam Practice Question
A couple enters into a purchase contract to buy a house, and their parents are providing a $6,000 earnest money check. The check is deposited in the listing broker's escrow account. The buyers are unable to get financing, and the contract provides for return of the earnest money to the buyers. The buyers and seller agree in writing to the release of the earnest money. The listing broker should
Correct Answer: B
Rationale: In this scenario, the earnest money belongs to the buyers, as they are the ones who entered into the purchase contract and are entitled to its return under the agreement. Option B correctly directs the broker to issue a $5,000 check to the buyers, reflecting their right to receive the full amount of the earnest money.
Option A is incorrect because the parents are not the buyers in the contract; they provided the earnest money, but the buyers are the rightful recipients.
Options C and D suggest deducting expenses from the earnest money. Since the contract specifies the return of the earnest money to the buyers without stipulating any deductions, these options misinterpret the terms of the agreement.
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