What is the correct answer to: Law requires brokers deposit funds no later than:

The correct answer is the 7th business day. Maryland law requires that brokers deposit funds received in connection with a real estate transaction into an escrow or trust account no later than the 7th business day after receipt, as established under COMAR 09.11.04. This 7-business-day rule gives brokers a reasonable administrative window while still protecting client funds from prolonged exposure to mishandling. Failure to meet this deadline can result in disciplinary action by the Maryland Real Estate Commission, including license suspension or revocation.

What background knowledge is needed for this Practice Of Real Estate question?

Trust account regulations in real estate emerged in the mid-20th century following numerous cases of broker fraud and insolvency where client deposits were lost because they were commingled with operating funds. Maryland, like most states, codified escrow deposit rules through its real estate commission regulations to standardize the handling of client money. The 7-business-day rule reflects a balance between giving brokers enough time to process paperwork and banking logistics while minimizing consumer risk. These regulations are periodically reviewed and updated by the Maryland Real Estate Commission.

What is a good way to remember the answer to this Practice Of Real Estate question?

Remember '7 Business Days' with the phrase 'A broker has ONE work week plus two days to protect your money' — one standard work week is 5 days, plus 2 more equals 7. Alternatively, think of the number 7 as a lucky number: the broker gets 7 days to make sure your lucky deposit is safely locked away in escrow. Visualize a vault door closing on day 7 with a big '7' stamped on it. Recite this rhyme when you see questions about deposit timeframes. The number seven is key to remembering the 7-business-day requirement.

What exam tip applies to this Practice Of Real Estate question?

Maryland exam questions about deposit deadlines will often include plausible-sounding distractors like 5 days or 14 days — memorize '7 business days' as a hard fact and do not second-guess it. Pay close attention to whether the question says 'business days' or 'calendar days,' as this distinction is frequently tested and changes the calculation significantly. When in doubt, the answer that reflects a moderate, consumer-protective window (not too short, not too long) is usually correct.

How does this Practice Of Real Estate concept apply in real world practice?

A buyer in Annapolis submits a $15,000 earnest money check to a broker on a Monday. Under Maryland law, the broker must deposit that check into a dedicated escrow trust account no later than the following Tuesday (7 business days later, excluding weekends and holidays). If the broker instead holds the check in a desk drawer for two weeks while waiting to see if the deal proceeds, they are in violation of COMAR and subject to disciplinary action by the Maryland Real Estate Commission.

Practice Of Real EstateLicense LawMEDIUM

Law requires brokers deposit funds no later than:

Correct Answer

B) the 7th business day

Within 7 business days.

Answer Options

the 5th business day

the 7th business day

the 14th business day

the 21st business day

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Do Not Call Registry

The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.

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Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.

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FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.

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Law requires brokers deposit funds no later than:

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