Expert: Dick Dennis - 1/3/2010

Question
i am going through the real estate school live course and am stuck on a problem and was wondering if you could help me out with your expertise..
Q) $2,000 was put in a brokers trust account.  after seller accepted an offer and all other conditions were met, the buyer said there was a provision in the contract that gave him an "out" and demanded his money back.  the seller agreed to rescind the contract if he can keep half of the deposit. buyer says "no" and wants all his deposit returned.  seller rejects this and says he will keep the entire amount. the broker should then:
A)return the deposit to buyer
B) leave the money in a trust account
C) give half the money to the seller
D) give the money to the seller

if u can help me with this question that would help me out a ton.  thanks for your time

Answer
B. Ryan. What must be done is for the broker to prepare a release form for the buyer and seller to sign . . . then the money is released to whomever it is agreed to receive it. The buyer has no obligation to the broker, therefore, the broker cannot ask for half the deposit. If the seller were to declare that the deposit belongs to him and the buyer agrees, then the broker may receive half of the deposit. Otherwise, it sits in his trust account until it is settled who gets it. I wish you well.

Dick Dennis
dixiedee13@aol.com
Please visit my blog at: therealestateanswerguy@blogspot.com