Florida Real Estate Broker ExaminationReal Estate Law and RegulationsEasy
A Florida real estate sales associate receives an earnest money deposit check from a buyer. The sales associate must deliver this deposit to their employing broker by the end of which business day?
- AImmediately upon receipt.
- BThe end of the third business day after receiving it.
- CThe next business day after receiving it.
- DThe end of the first business day following the date of the offer.
Show answer & explanationAnswer & explanation
Correct answer: C. The next business day after receiving it.
Florida Statute 475.25(1)(d) requires sales associates and broker associates to deliver earnest money deposits to their employing broker no later than the end of the next business day following receipt.
Why the other options are wrong
- A. While immediate delivery is good practice, the law provides until the end of the next business day.
- B. This is the timeframe for the broker to deposit the funds into an escrow account, not for the associate to deliver to the broker.
- D. The timeframe is based on receipt of the funds, not the date of the offer.
Earnest Money Delivery (Associate to Broker)
A real estate sales associate or broker associate must deliver any earnest money deposit received to their employing broker by the end of the next business day.
- Applies to sales associates and broker associates.
- Deadline is end of next business day.
- Funds must be delivered to employing broker.
- Broker then has additional time to deposit into escrow.
Memory trick: Associate's hand to broker's hand, one day's command.