Broker Bob is holding the earnest money deposit when the transaction falls apart. The seller gives Bob written instructions to release the earnest money to the buyer, but the buyer does not sign the instructions. Bob releases the earnest money to the buyer. Has Bob acted properly

Question

Jose West

Business

20 October, 04:15

Broker Bob is holding the earnest money deposit when the transaction falls apart. The seller gives Bob written instructions to release the earnest money to the buyer, but the buyer does not sign the instructions. Bob releases the earnest money to the buyer. Has Bob acted properly

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Answers (1)

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Ferguson · Answer 1

Yes, Bob did the right thing.

Explanation:

When a deal falls apart, the broker must return the earnest money to one of the parties, if there is a dispute over the money, then he can turn the money into a court so it decides who should get it. In this case, there is no dispute about who should get the money, and Bob received written instructions from one party telling him to return the money to the other party. He doesn't need to wait to see if the buyer wants the money back, he should just give it back.