New Jersey Real Estate Practice Exam Practice Question
The purchase and sales agreement provides for release of earnest money to the seller after the buyer's property inspection. The seller requests the earnest money prior to the property inspection. The broker should
Correct Answer: D
Rationale: Releasing the earnest money prior to the property inspection violates the terms of the purchase and sales agreement, which stipulates that it should only be released after the inspection. Option A is incorrect as it disregards the agreed-upon conditions. Option B, while notifying the buyer is important, does not comply with the agreement's stipulations, making it insufficient. Option C relies on verbal approval, which is not a secure or documented method for such transactions. Therefore, refusing to release the earnest money ensures adherence to the contract and protects the buyer's interests.
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