PSI New Jersey Real Estate State Practice Exam 2025 - Free Real Estate License Practice Questions and Study Guide

The correct choice highlights a crucial aspect of real estate transactions concerning deposit disbursement. When a seller requests the release of deposit funds, the disbursement is typically contingent upon several factors, particularly the status of the transaction and any potential disputes or encumbrances.

If there are ongoing issues such as a voided contract or legal encumbrances on the property, it may not be appropriate or legally permissible to disburse those funds to the seller. The buyer's rights and the details of the contract often govern whether a deposit can be released, ensuring that the funds are protected against any potential claims or losses arising from the transaction.

In essence, whenever there is uncertainty regarding the enforceability of the contract or disputes about the terms, it is prudent to withhold disbursing the deposit to the seller to safeguard both parties' interests until those issues are resolved appropriately.