Question

A buyer properly revokes the offer after receiving the property condition disclosure and requests the return of the buyer's earnest money the principal broker is holding in a ____________ trust account. The PREB (1) may require the buyer to sign a release before returning the money; (2) must obtain the seller's permission before returning the money.

Answer 1

Answer:

1. Clients'

2. The principal real estate broker (PREB) may require the buyer to sign a release before returning the money.

Explanation:

In this scenario, a buyer properly revokes the offer after receiving the property condition disclosure and requests the return of the buyer's earnest money the principal broker is holding in a clients' trust account. The principal real estate broker (PREB) may require the buyer to sign a release before returning the money.

Additionally, a principal real estate broker (PREB) can be defined as an individual who is licensed to individually provide a professional real estate service or work with other licensed brokers.

The amount of money being paid to a broker by a buyer as an initial payment to sign a purchase agreement letter is referred to as the earnest money. A principal real estate broker collects the earnest money from a buyer on behalf of the seller of a property such as land, buildings etc.