Real estate earnest money question?

Question

Barbara, a buyer's agent with another real estate firm, called Tom, and said she had a contract to present with earnest money. Barbara delivered the contract to Tom, and he made an appointment to present the offer at 10am. At 930 am Barbara called Tom and told him the buyers did not want the contract presented. Broker Tom should:

a. hold the earnest money until Barbara signs a release

b. go ahead and present the offer and tell the seller to make a counteroffer.

c.return the contract and earnest money immediately to Barbara

d. hold the earnest money until Barbara makes an offer on a different home

Answer 1

The money is returned to Babara who in turn gives it back to the buyer.

The earnest money become important if the buyer backs out of the contact. I once had an offer on the house, without contingencies, and the buyer backed out. Her house sale fell through and she wasn't able to buy mine. I collected the earnest money.

As Tom is not the buyers agent and no contract has been offered, he has no right to hold the money.

Answer 2

If you can't figure out your homework you are not ready for this career.   This is really basic.

Answer 3

.   c     Barbara's offer "died" as soon as she contacted Tom.