Final answer:
A buyer's payment with an NSF check does not immediately void the real estate transaction but requires communication between broker and buyer to resolve the issue. If the broker covers the NSF with good funds, it must be documented to avoid accusations of commingling.
Step-by-step explanation:
If a buyer in a real estate transaction pays the earnest money deposit with a Non-Sufficient Funds (NSF) check, the most immediate fact is that the buyer has not met their obligation to provide good funds, which is necessary for the escrow process to proceed correctly. The transaction itself is not automatically void but faces potential issues such as breach of contract depending on the terms specified within the contract. The correct answer varies depending on the terms agreed upon in the contract and the actions taken by the broker and buyer following the discovery of the NSF check. Typically, the broker would need to notify the buyer of the NSF check and request good funds. If the broker were to cover the NSF check with their own funds, this must be properly recorded in the broker's operating journal, as any unrecorded actions may lead to accusations of commingling, which is a serious issue in real estate transactions.