In the Condo Resale escrow disbursement exemption, when may the broker refund the deposit to the buyer without notifying the commission?

• A. Only if the buyer withdraws
• B. If financing cannot be obtained
• C. If the contract is canceled by HUD
• D. If the buyer is in default

Answer: (B)

The important idea here is how the escrow disbursement exemption works in condo resale transactions. When a contract includes a financing contingency, if the buyer cannot obtain financing and the contract is canceled, the broker is allowed to refund the earnest money directly to the buyer without having to notify the Florida Real Estate Commission. This exemption is intended to streamline refunds that result from a buyer’s failure to secure financing.

So, the broker may return the deposit to the buyer without commission notification specifically because financing cannot be obtained under the terms of the contract. If the cancellation happens for any other reason or if financing is obtained, standard escrow disbursement procedures apply and typically require following the commission’s rules and notifying the appropriate parties.