Question 55

Yes, if the property owner gives written consent.

A licensee may accept the title to a speedboat as an earnest deposit if the property owner provides written consent. This indicates that the acceptance of such a deposit is contingent upon the agreement of the seller.

A) Yes, if the property owner gives written consent.

This option is correct because it acknowledges that the acceptance of the speedboat title as an earnest deposit is permissible with the property owner's consent. Written consent ensures that all parties agree to the terms of the deposit, making it a valid arrangement.

B) Yes, if the licensee is certain of the value of the boat.

This option is incorrect as it implies that the value of the speedboat alone is sufficient for it to be accepted as an earnest deposit. However, without the property owner's consent, the value of the boat does not justify its acceptance as collateral.

C) No, an earnest deposit must be a personal or cashier's check only.

This option is incorrect because it asserts a limitation on the form of earnest deposits that does not account for the possibility of alternative agreements, such as accepting personal property with consent. The law allows flexibility in how earnest money can be structured provided all parties agree.

D) No, personal property is not allowed as an earnest deposit.

This option is incorrect as it categorically states that personal property cannot be used as an earnest deposit. While it is true that typically cash or checks are preferred, the acceptance of other forms of value, like property, is allowed if the seller agrees to it.

Conclusion

The correct answer is A, as it highlights the necessity of the property owner's consent when accepting non-traditional forms of earnest deposits, such as a title to a speedboat. Options B, C, and D fail to recognize the importance of consent and the flexibility permitted in earnest agreements, which allows for personal property to be utilized as collateral when agreed upon by all parties involved.