Under the HUD purchase escrow disbursement exemption, what may the broker do with the escrow deposit?

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Multiple Choice

Under the HUD purchase escrow disbursement exemption, what may the broker do with the escrow deposit?

Explanation:
In this exemption, the broker is authorized to release the escrow deposit to the buyer as directed in the HUD contract. This avoids waiting for HUD approval and keeps the closing process moving according to the contract terms. Holding funds until HUD approves isn’t how the exemption works, and refunding to the seller or filing a new Escrow Disbursement Order isn’t required under this provision.

In this exemption, the broker is authorized to release the escrow deposit to the buyer as directed in the HUD contract. This avoids waiting for HUD approval and keeps the closing process moving according to the contract terms. Holding funds until HUD approves isn’t how the exemption works, and refunding to the seller or filing a new Escrow Disbursement Order isn’t required under this provision.

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