Florida Real Estate Exam

Category - Florida

On August 5, a broker obtained a seller’s signature on a signed offer from a qualified buyer.  On August 10, the broker received conflicting demands from both parties for the escrowed deposit of $10,000.  On August 11, the broker telephoned FREC to notify the Commission of the situation and was told to comply with Ch. 475, F.S., in her handling of the matter.  For several days, the broker attempted to get the buyer and seller to either arbitrate or mediate the matter but was unsuccessful.  On September 15, the broker requested that FREC issue an escrow disbursement order to decide who is entitled to the escrowed funds.  Ch. 475, F.S., has been violated because the broker should have:
  1. Requested the escrow disbursement order on or before September 10
  2. Petitioned a court of law for a writ of interpleader prior to September 10
  3. Notified FREC in writing of the dispute on or before September 10
  4. Submitted the matter to a certified and licensed mediator on or before September 10
Explanation
Answer A - If a broker receives conflicting demands on escrowed property, the broker must notify FREC in writing within 15 business days of the party’s last demand. The broker must institute one of four settlement procedures within 30 business days after the last demand.
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