Lesson 6: Preparing and Negotiating Offers

Question 1

deposit receipt

Answer 1

Traditionally, the purchase agreement form served as the buyer’s receipt for the deposit. For this reason, a purchase agreement is sometimes called a deposit receipt.

Question 2

mailbox rule

Answer 2

When the acceptance is communicated in person, the acceptance is deemed to have taken place at the time of delivery. But if the acceptance is mailed, the mailbox rule applies.

Under this rule, the acceptance creates a binding contract as soon as it is dropped in the mailbox.

Question 3

interpleader action

Answer 3

If the buyer and seller do not agree on who should get the good faith deposit, the broker holding the deposit should: file a lawsuit called an interpleader action and deposit the funds with the court