What does a ‘hot potato’ refer to in real estate transactions?

In real estate transactions, the term 'hot potato' refers to funds that should be quickly handled or processed. This metaphor conveys the urgency and potential risk involved when dealing with certain financial aspects of a transaction, such as earnest money deposits or closing costs. It emphasizes the importance of acting promptly to avoid complications or losses, as the longer these funds remain unaddressed, the more problematic the situation may become for all parties involved.

In contrast, the other concepts suggested by the options provide different ideas unrelated to the specific urgency of fund management in real estate. For instance, a stagnant transaction refers to a deal that has come to a standstill, while a property that is difficult to sell indicates market challenges that can arise. Lastly, an argument between parties indicates a conflict but does not capture the urgency associated with quickly managing financial elements in a transaction. Therefore, option B accurately reflects the correct understanding of 'hot potato' in this context.