Chapter 4 - Escrow Management || All Answers are Valid.
Two weeks after signing the contract to purchase a residential condominium unit, the condo
association review committee fails to approve the sale between the buyer and the seller. (The
seller is not a developer.) The buyer requests return of the deposit, but the seller indicates to the
broker that he will not sign a release of the funds. Which statement is TRUE regarding this
situation?
A)
The broker must notify the Florida Real Estate Commission (FREC) of the conflicting demands
within 15 business days of receiving notice that both parties are making demands for the deposit.
B)
Because the property is a residential condominium unit, the broker may return the funds to the
buyer without first getting the seller's permission.
C)
The broker must request an escrow disbursement order.
D)
Because the condominium association did not approve the sale between the buyer and the seller,
no contract exists and the broker may re correct answers A)
The broker must notify the Florida Real Estate Commission (FREC) of the conflicting demands
within 15 business days of receiving notice that both parties are making demands for the deposit.
The answer is the broker must notify the Florida Real Estate Commission (FREC) of the
conflicting demands within 15 business days of receiving notice that both parties are making
demands for the deposit. Real estate license law provides only one exception to the notice
requirements when a condominium is involved: When the buyer decides to cancel the contract
after reviewing the condo documents within 3 business days (resale) or 15 calendar days (with a
developer) of receipt of the documents.
A broker is NOT required by law to notify the Florida Real Estate Commission (FREC) of
conflicting demands in which situation?
, A)
Buyers find another property at a lower price and demand a refund of the binder deposit. The
seller refuses to sign a release of binder deposit.
B)
Fifteen days after signing the sale contract and reviewing the condominium documents, the
buyers notify the broker that they want to cancel the contract to purchase a condo from a private
owner. Both the seller and the buyer claim the earnest money deposit.
C)
A buyer receives an official letter from the prospective lender indicating that the buyer does not
qualify for the mortgage loan as specified in the financing clause of the sale contract.
D)
Sellers decide they do not want to sell to the buyers and refuse to allow the broker to release the
buyer's earnest money deposit. correct answers C)
A buyer receives an official letter from the prospective lender indicating that the buyer does not
qualify for the mortgage loan as specified in the financing clause of the sale contract.
The answer is a buyer receives an official letter from the prospective lender indicating that the
buyer does not qualify for the mortgage loan as specified in the financing clause of the sale
contract. If a buyer in good faith fails to satisfy the terms specified in the financing clause of a
contract for sale and purchase, the licensee may return the escrowed funds to the purchaser
without notifying the FREC or initiating a settlement procedure.
A broker has requested an escrow disbursement order. However, in the meantime, the buyer and
the seller begin action to have the matter litigated in a court of law. Which statement is TRUE
regarding this situation?
A)
The broker must notify the FREC of the outcome of the court proceeding once the matter is
concluded.
B)
The broker must notify the FREC within 10 business days that the matter will be resolved by the
courts.
Two weeks after signing the contract to purchase a residential condominium unit, the condo
association review committee fails to approve the sale between the buyer and the seller. (The
seller is not a developer.) The buyer requests return of the deposit, but the seller indicates to the
broker that he will not sign a release of the funds. Which statement is TRUE regarding this
situation?
A)
The broker must notify the Florida Real Estate Commission (FREC) of the conflicting demands
within 15 business days of receiving notice that both parties are making demands for the deposit.
B)
Because the property is a residential condominium unit, the broker may return the funds to the
buyer without first getting the seller's permission.
C)
The broker must request an escrow disbursement order.
D)
Because the condominium association did not approve the sale between the buyer and the seller,
no contract exists and the broker may re correct answers A)
The broker must notify the Florida Real Estate Commission (FREC) of the conflicting demands
within 15 business days of receiving notice that both parties are making demands for the deposit.
The answer is the broker must notify the Florida Real Estate Commission (FREC) of the
conflicting demands within 15 business days of receiving notice that both parties are making
demands for the deposit. Real estate license law provides only one exception to the notice
requirements when a condominium is involved: When the buyer decides to cancel the contract
after reviewing the condo documents within 3 business days (resale) or 15 calendar days (with a
developer) of receipt of the documents.
A broker is NOT required by law to notify the Florida Real Estate Commission (FREC) of
conflicting demands in which situation?
, A)
Buyers find another property at a lower price and demand a refund of the binder deposit. The
seller refuses to sign a release of binder deposit.
B)
Fifteen days after signing the sale contract and reviewing the condominium documents, the
buyers notify the broker that they want to cancel the contract to purchase a condo from a private
owner. Both the seller and the buyer claim the earnest money deposit.
C)
A buyer receives an official letter from the prospective lender indicating that the buyer does not
qualify for the mortgage loan as specified in the financing clause of the sale contract.
D)
Sellers decide they do not want to sell to the buyers and refuse to allow the broker to release the
buyer's earnest money deposit. correct answers C)
A buyer receives an official letter from the prospective lender indicating that the buyer does not
qualify for the mortgage loan as specified in the financing clause of the sale contract.
The answer is a buyer receives an official letter from the prospective lender indicating that the
buyer does not qualify for the mortgage loan as specified in the financing clause of the sale
contract. If a buyer in good faith fails to satisfy the terms specified in the financing clause of a
contract for sale and purchase, the licensee may return the escrowed funds to the purchaser
without notifying the FREC or initiating a settlement procedure.
A broker has requested an escrow disbursement order. However, in the meantime, the buyer and
the seller begin action to have the matter litigated in a court of law. Which statement is TRUE
regarding this situation?
A)
The broker must notify the FREC of the outcome of the court proceeding once the matter is
concluded.
B)
The broker must notify the FREC within 10 business days that the matter will be resolved by the
courts.
