Michigan Real Estate Exam Practice Question
The buyers' parents are providing a $2,000 earnest money check. The check is dependent on the client's parents' income. The buyers can usually be paid twice, and the agreement provides for return of the earnest money to the buyer. The broker should:
Correct Answer: D
Rationale: Option D is appropriate as it ensures that the earnest money check is made out to the buyers, reflecting their role in the transaction while allowing for the return of funds if necessary.
Options A and B are identical and incorrect because they suggest writing a check directly to the buyer, which does not account for the parents' involvement in providing the earnest money.
Option C is also incorrect since it suggests writing the check to the parents, which could complicate the transaction and does not align with standard practices where the buyers are the ones entering into the agreement.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now