The selling agent must NOT accept a promissory note as an earnest money deposit:

A. unless the agent knows that the buyer has an excellent credit history
B. unless the purchase and sale agreement discloses that the deposit is a note
C. unless the seller agreed during negotiations discussion to accept a promissory note
D. under any circumstance

Answer: B. unless the purchase and sale agreement discloses that the deposit is a note
When preparing the buyer's offer to purchase, the selling agent must disclose on the purchase and sale agreement form that the deposit is in the form of a promissory note (or any other form that is not the equivalent of cash). The seller can then take this into account in deciding whether or not to accept the buyer's offer