Question 2

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

Deposit monies cannot be disbursed to the seller upon their written request because such a disbursement typically requires conditions to be met that protect the buyer's interests.

A) At closing or settlement.

This option is incorrect because it is common practice for deposit monies to be disbursed to the seller at closing or settlement, provided that all contractual obligations have been fulfilled. This scenario is a standard part of real estate transactions.

B) As provided in the sales agreement.

This option is also incorrect since the sales agreement usually outlines the terms under which deposit monies can be disbursed. If the agreement specifies conditions for disbursement, then it is permissible, contrary to the question’s context.

C) Upon the written consent of the buyer.

This option is incorrect because deposit monies may be disbursed to the seller if the buyer provides written consent. The buyer's consent acts as a protective measure, allowing for the release of funds in accordance with agreed-upon terms.

D) Upon written request of the seller.

This option is correct because deposit monies should not be disbursed solely based on the seller's written request. Such a disbursement would not typically occur without fulfilling specific criteria that safeguard the buyer's investment.

Conclusion

The correct answer is D because it highlights the necessity for conditions to be met before any disbursement to the seller can occur. Options A, B, and C outline scenarios where disbursement may be valid, while option D represents a situation that lacks the necessary safeguards, making it the only correct choice in this context.