If an earnest money check bounces, who must be notified?

When an earnest money check bounces, it's crucial for the seller to be informed about the situation as soon as possible. The listing agent has a fiduciary duty to keep the seller updated on important developments regarding the transaction. This includes any issues related to the buyer's ability to perform under the terms of the purchase agreement, such as a bounced check.

Notifying the seller allows them to take appropriate action based on the circumstances. They might want to consider whether to allow the buyer to rectify the situation, seek a different form of earnest money, or even terminate the contract if the buyer is unable to meet the financial requirements. Keeping the seller informed is essential for making informed decisions about the transaction’s future.

The other choices do not encompass the full responsibility of communication that lies with the listing agent to the seller in this situation.