Which party must also be notified if an earnest money check is returned?

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Prepare for the Montana Real Estate Exam. Use flashcards and multiple choice questions, each question comes with hints and explanations. Get ready to succeed on your exam!

The party that must also be notified if an earnest money check is returned is the buyer's agent. The buyer's agent has a fiduciary responsibility to represent the interests of the buyer throughout the transaction. When an earnest money check is returned, it could indicate potential issues regarding the buyer's financial status or intent to proceed with the purchase.

Notifying the buyer’s agent is crucial because they need to communicate this information to their client, the buyer, to take appropriate action. Depending on the circumstances, this might involve ensuring additional funds are available or renegotiating terms with the seller. The buyer's agent plays a pivotal role in facilitating the transaction, including addressing any issues that arise with earnest money.

In contrast, while the listing agent and the seller may need to be aware of the situation, the direct relationship and duties of the buyer's agent to the buyer make their notification essential in order to uphold the agency responsibilities effectively.

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