Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresEasy
A real estate broker receives an earnest money deposit from a buyer on Friday. The broker's office is located in a different city than the bank where their escrow account is held. What is the latest day the broker must deposit the funds into their escrow account, assuming no holidays?
- ATuesday of the following week
- BMonday of the following week
- CWednesday of the following week
- DThursday of the following week
Show answer & explanationAnswer & explanation
Correct answer: C. Wednesday of the following week
Florida law requires brokers to deposit earnest money into an escrow account no later than the end of the third business day following receipt. If received on Friday, Saturday and Sunday are not business days. Thus, Monday is day 1, Tuesday is day 2, and Wednesday is day 3.
Why the other options are wrong
- A. This is too early; the broker has up to three business days.
- B. This is too early; the broker has up to three business days.
- D. This is too late; it would be the fourth business day.
Escrow Deposit Deadline
Florida brokers must deposit earnest money and other trust funds into an escrow account within a specific timeframe.
- Deadline is end of the third business day.
- Business days exclude Saturdays, Sundays, and legal holidays.
- Failure to comply is a serious license law violation.
Memory trick: Three Days to Deposit, Don't Delay!