Under what condition can a selling agent accept a promissory note as an earnest money deposit?

A selling agent can accept a promissory note as an earnest money deposit when it is disclosed in the purchase and sale agreement. This condition ensures that all parties involved in the transaction are aware of the terms and that the note is formally recognized and agreed upon in the contractual documentation. Including this detail in the purchase and sale agreement provides clarity and protects the interests of both the buyer and the seller, as it outlines the agreed-upon form of earnest money and ensures that the parties are contractually bound to this arrangement.

The other conditions, while they may involve elements of agreement or consent, do not provide the same level of formal recognition or binding effect that is necessary in a real estate transaction. A verbal agreement lacks the necessary documentation to enforce the terms, and consent from the seller without proper disclosure does not fulfill the requirement for formal agreement in the purchase and sale contract. Moreover, conducting a title search is not relevant to the acceptance of a promissory note as earnest money, as it pertains to ensuring that the title is clear and free of liens rather than the terms of the payment itself.