Who is responsible for determining the legitimacy of an earnest money check?

The broker is responsible for determining the legitimacy of an earnest money check. This responsibility is crucial because the broker acts as an intermediary in real estate transactions, and part of their role includes safeguarding the interests of both the buyer and the seller.

When a buyer submits an earnest money check, it serves as a demonstration of their serious intent to purchase the property. The broker must ensure that the check is valid and that the funds are accessible to avoid complications later in the transaction. If a check is deemed illegitimate or bounces, it can create significant issues, including delays in the transaction process or loss of trust between the parties involved.

While the seller and buyer have a vested interest in ensuring the earnest money is legitimate, the broker's position as a licensed professional confers the responsibility to verify the check's legitimacy. The real estate agency itself, as an organizational entity, relies on the broker's expertise and due diligence in these matters.