PSI New Jersey Real Estate State Practice Exam

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Prepare for the New Jersey Real Estate Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Ace your exam confidently!

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Deposit monies may NOT be disbursed to the seller in which circumstance?

Upon written request of the buyer
When the contract is voided
If there are legal encumbrances
Upon written request of seller

The correct answer is: Upon written request of seller

The correct choice highlights a crucial aspect of real estate transactions concerning deposit disbursement. When a seller requests the release of deposit funds, the disbursement is typically contingent upon several factors, particularly the status of the transaction and any potential disputes or encumbrances. If there are ongoing issues such as a voided contract or legal encumbrances on the property, it may not be appropriate or legally permissible to disburse those funds to the seller. The buyer's rights and the details of the contract often govern whether a deposit can be released, ensuring that the funds are protected against any potential claims or losses arising from the transaction. In essence, whenever there is uncertainty regarding the enforceability of the contract or disputes about the terms, it is prudent to withhold disbursing the deposit to the seller to safeguard both parties' interests until those issues are resolved appropriately.