Florida Real Estate Broker ExaminationReal Estate Brokerage ManagementMedium
A broker operating a real estate business has received an earnest money deposit from a buyer. According to Florida law, what is the latest point at which the broker must deposit these funds into an escrow account?
- AWithin three business days after receipt.
- BUpon closing of the transaction.
- CWithin five business days after the contract becomes legally binding.
- DImmediately upon receipt, no later than the end of the business day following receipt.
Show answer & explanationAnswer & explanation
Correct answer: A. Within three business days after receipt.
Florida Statute 475.25(1)(d) and Rule 61J2-14.008(1) F.A.C. require a broker to deposit earnest money into an escrow account no later than the end of the third business day following receipt of the funds.
Why the other options are wrong
- B. Waiting until closing is a serious violation and commingling of funds.
- C. Five business days is incorrect, and the timing is from receipt, not contract binding.
- D. This is the rule for sales associates delivering funds to their broker, not for brokers depositing into escrow.
Escrow Deposit Deadline (Broker)
Florida brokers must deposit earnest money and other trust funds into an escrow account within a specific timeframe to prevent commingling and ensure proper handling.
- Deadline is the end of the third business day.
- Time starts upon receipt of funds by the broker.
- Applies to all trust funds, not just earnest money.
Memory trick: Three's the magic number for escrow, don't let funds linger!