What should a real estate broker do with the trust funds


Problem: What should a real estate broker do with the trust funds he is holding when a real estate sales transaction is terminated because of strong disagreements between the seller and buyer, with each claiming the entire amount of earnest money being held by the broker? Review Later Attempt to obtain a written release from the parties consenting to the disposition of the funds. The only option is to hold the funds until a court determines the party entitled to the earnest money deposit. Retain all of the funds for the brokerage to cover lost commission. Determine which party is entitled to the funds based upon the broker's judgment.

 

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