70. The buyers' parents are providing a $2,000 earnest money check. The check is dependent on the client's parents' income. The buyers can usually be paid twice, and the agreement provides for return of the earnest money to the buyer. The broker should:
Answer: D
The broker should write the earnest money check, other expenses, to the buyers.
The broker's appropriate action is to write the earnest money check, including other expenses, directly to the buyers. This ensures that the funds are properly allocated to the transaction involving the buyers, who are the primary parties to the agreement.
A) Write a $2,000 check to the buyer.
This option is incorrect because it does not clarify whether the check is intended for the buyer or if it is meant to be an earnest money deposit. The phrasing is ambiguous and does not align with the requirement that the earnest money check should be directed towards the transaction involving the buyers.
B) Write a $2,000 check to the buyer.
Similar to Option A, this choice is also incorrect for the same reasons. It lacks specificity regarding the purpose of the check and fails to indicate that the earnest money should be tied to the buyers' agreement.
C) Write the earnest money check, other expenses, to the parents.
This option is incorrect because the earnest money should be associated with the buyers rather than their parents. Writing the check to the parents might complicate the transaction and does not reflect the direct relationship the buyers have with the agreement.
D) Write the earnest money check, other expenses, to the buyers.
This is the correct option as it directly addresses the need to allocate the earnest money check to the buyers in accordance with the agreement. It ensures that the funds are appropriately linked to the buyers' real estate transaction.
Conclusion
In summary, the correct action is to write the earnest money check, along with other expenses, to the buyers, as they are the main parties in the transaction. Options A, B, and C fail to properly address the allocation of funds and may lead to confusion in the transaction process. Thus, only Option D fulfills the requirements set forth in the agreement.