Tennessee Real Estate License Exam Practice Question

Under what circumstances may a postdated check be accepted for earnest money?

Correct Answer: C

Rationale: Accepting a postdated check for earnest money is permissible when the offer explicitly states this arrangement, ensuring all parties are informed and agree to the terms.

Option A is incorrect as it dismisses any potential for accepting postdated checks under agreed conditions. Option B is misleading; verifying funds does not address the fundamental issue of the check being postdated. Option D inaccurately limits the timeframe for postdating, which is not a standard requirement. Clarity in the offer is essential for acceptance, making option C the most appropriate choice.

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