Question 1

Deposit monies may NOT be disbursed to the seller upon written request of the seller.

Deposit monies should not be disbursed to the seller upon their written request because such action typically requires specific conditions to be met, often including the buyer's consent or fulfillment of contractual obligations.

A) At closing or settlement

Disbursing deposit monies at closing or settlement is standard practice, as this is when the transfer of ownership occurs and financial settlements are finalized. Therefore, this option is incorrect as it does not reflect a circumstance where disbursement is prohibited.

B) As provided in the sales agreement

Deposit monies may be disbursed as stipulated in the sales agreement, which outlines the conditions for such transactions. Since this is a typical scenario where funds can be released, this option does not represent a circumstance where disbursement is not allowed.

C) Upon the written consent of the buyer

When the buyer provides written consent, it is generally permissible to disburse deposit monies to the seller, as this aligns with the mutual agreements made in the contract. Thus, this choice is also incorrect regarding circumstances where disbursement is restricted.

D) Upon written request of the seller

Disbursing deposit monies solely upon the seller's written request is not typically allowed without other conditions being met, such as buyer consent or specific terms in the sales agreement. This makes it the correct choice, as it indicates a situation where disbursement would not be appropriate.

Conclusion

The rationale clearly identifies that deposit monies cannot be disbursed to the seller solely based on their written request, as this does not meet the necessary conditions of consent or contractual terms. In contrast, the other options presented allow for disbursement under standard transactional practices, reinforcing that they do not reflect restrictions on disbursement.