A Hawaii broker asks a salesperson about earnest money is received in a Hawaii sale. Which answer follows Hawaii law?
Correct Answer
B) The brokerage must place the trust funds in a neutral escrow depository or federally insured trust account by the next business day
HAR 16-99-4 requires trust funds to be deposited or placed by the next business day after receipt. Source basis: Hawaii DCCA PSI state outline hi.VIII Escrow Process and Closing Statements plus official HAR 16-99-4 and HRS chapters 247, 449, 502, and 667; checked 2026-04-30.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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