Question 46

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 this action typically requires the buyer's consent or adherence to specific contractual obligations outlined in the sales agreement.

A) At closing or settlement.

Disbursing deposit monies at closing or settlement is a standard practice in real estate transactions, as it is the moment when the funds are formally exchanged and ownership is transferred. Therefore, this option is not a circumstance where disbursement would be prohibited.

B) As provided in the sales agreement.

If the sales agreement outlines specific conditions for the disbursement of deposit monies, those conditions must be followed. Since the sales agreement serves as a binding contract, this option does not represent a circumstance that prevents disbursement to the seller.

C) Upon the written consent of the buyer.

If the buyer provides written consent, the deposit monies can be disbursed to the seller. This option indicates a scenario where disbursement is allowed, thus it does not represent a restriction on the disbursement of funds.

D) Upon written request of the seller.

Disbursing deposit monies solely upon the written request of the seller is not permissible as it bypasses the necessary consent or agreement from the buyer. This situation can lead to disputes and is generally not allowed without the buyer's agreement, making this the correct answer.

Conclusion

The correct answer is D because deposit monies should not be disbursed to the seller without the appropriate consent from the buyer, which is essential to protect the interests of both parties. Options A, B, and C all present scenarios where disbursement is permissible, highlighting the importance of mutual agreement in real estate transactions.