Virginia Real Estate License Law Practice Test 2025 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

Unless agreed upon by all parties to a transaction, earnest money ________________ be deposited before acceptance of an offer to purchase.

should

must always

should not

The correct answer indicates that earnest money should not be deposited before all parties to a transaction have agreed to the terms of the offer to purchase. In real estate transactions, earnest money serves as a good faith deposit by the buyer, demonstrating their serious intent to complete the purchase. However, it is essential that this deposit occurs only after an agreement is reached and all parties have accepted the terms of the contract.

Depositing earnest money prematurely could lead to confusion and potential disputes, as it may imply the buyer's commitment before the seller has officially accepted the offer. Moreover, many real estate practices and state laws emphasize the importance of mutual agreement before any funds are exchanged. This ensures that both parties are on the same page regarding the terms of the transaction, providing a clearer and more secure path forward for the purchase process.

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