A Florida real estate sales associate receives an earnest money deposit check from a buyer on Friday. The sales associate delivers the check to their employing broker on Monday morning. Assuming Monday is a business day, by when must the broker deposit the funds into their escrow account?
- AImmediately upon receipt from the sales associate.
- BBy the end of the next business day following receipt from the sales associate.
- CBy the end of the third business day following receipt by the sales associate.
- DBy the end of the third business day following receipt from the sales associate.
Show answer & explanationAnswer & explanation
Correct answer: D. By the end of the third business day following receipt from the sales associate.
Florida law states that a sales associate must deliver earnest money to their broker by the end of the next business day. The broker then has until the end of the third business day following *receipt by the sales associate* to deposit the funds into an escrow account. If the sales associate received it on Friday, Monday is the first business day, Tuesday the second, and Wednesday the third. So, the broker must deposit by Wednesday.
Why the other options are wrong
- A. While prompt, 'immediately' is not the legal deadline; there's a specific timeframe.
- B. This would be the deadline if the *broker* received it directly from the buyer on Monday, but the clock starts ticking when the *sales associate* receives it.
- C. This accurately reflects the 'third business day' rule, counting from the sales associate's initial receipt, not the broker's.
Earnest Money Deposit Timelines (FL)
Florida law dictates specific timelines for the delivery and deposit of earnest money deposits by sales associates and brokers.
- Sales associate to broker: end of next business day.
- Broker to escrow: end of third business day following sales associate's receipt.
- Business days exclude Saturdays, Sundays, and legal holidays.
Memory trick: EARNEST MONEY: SA to BROKER by NEXT DAY, BROKER to ESCROW by THIRD DAY (from SA's receipt).