A buyer and seller in Lexington, Kentucky enter into a purchase agreement for a residential property. The seller's agent receives a $3,000 earnest money check from the buyer on a Friday afternoon. According to Kentucky trust account regulations, by when must the broker deposit this earnest money into the escrow account?
Correct Answer
A) Within three business days of receipt
Under 201 KAR 11:150, Kentucky requires that a principal broker deposit all earnest money and trust funds received into the designated escrow/trust account within three business days of receipt. This is a specific Kentucky regulatory requirement that governs how quickly funds must be secured.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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