A $4,500 earnest money check bounces because of insufficient funds. The first thing the broker should do is:
A. notify escrow to charge this amount, plus the bounced check fee, to the buyer
B. notify the borrower
C. notify the principals
D. write a personal check for $4,500 to cover the shortage
Answer: C. notify the principals
Both principals (the buyer and the seller) are parties to the escrow instructions. The broker should notify both of them so they can decide how they want to proceed.
Business
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