Agent Thompson receives a personal check for $3,000 earnest money on Friday afternoon. The buyer asks if the check will be deposited immediately. What should Thompson tell the buyer about Florida's deposit requirements?
Correct Answer
B) The check must be deposited within 3 business days, so by Wednesday
Correct: Florida law requires earnest money deposits within 3 business days of receipt, so Friday to Wednesday. Why not A: Same day deposit is not required. Why not C: Cannot hold until contract execution - must deposit within timeframe. Why not D: 24-hour requirement is not Florida law.
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Related Topics & Key Terms
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Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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Previous Question
All of the following are acceptable methods for holding earnest money deposits in Florida EXCEPT:
Next Question
In a Florida residential contract file in Miami, the buyer paid an initial escrow deposit of $3,000 and an additional deposit of $2,000. The buyer then defaulted, and the contract gives the seller the right to retain the deposits as liquidated damages. How much may the seller retain under that clause?