Illinois Real Estate Practice Exam

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Prepare for the Illinois Real Estate Test. Practice with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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If a prospective buyer withdraws an offer before the seller accepts it and demands the return of the earnest money deposit, can the buyer do so?

No, the earnest money is forfeited
Yes, the buyer can retract the offer and get the earnest money back
The decision depends on the listing broker
The seller automatically keeps the deposit

The correct answer is: Yes, the buyer can retract the offer and get the earnest money back

The correct answer is that the buyer can retract the offer and get the earnest money back. In real estate transactions, an offer remains open for acceptance until the seller actually accepts it. If the prospective buyer decides to withdraw their offer before the seller has accepted it, they are entitled to reclaim their earnest money deposit. This refund is permissible because no contractual agreement has been finalized; therefore, the funds are still within the buyer's control. The context here involves the characteristics of earnest money in real estate transactions. The purpose of earnest money is to demonstrate the buyer's serious intent to purchase the property. However, as long as there is no acceptance from the seller, the seller has no claim to those funds, hence the buyer's right to withdraw the offer and receive their earnest money back.