Karen, an Ohio broker, receives a $10,000 earnest money deposit on Friday afternoon after her bank has closed. The next Monday is a federal banking holiday. Under ORC §4735.24, when is the latest Karen must deposit the earnest money?
Correct Answer
D) Wednesday (2 banking days after receipt)
Karen receives the deposit on Friday after the bank closes. The first banking day is Tuesday (Monday is a holiday), and the second banking day is Wednesday. Under ORC §4735.24, the deposit must be made within 2 banking days of receipt, so Wednesday is the deadline.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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.
More Oh Specific Contracts Forms Questions
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Previous Question
An Ohio purchase agreement includes an escalation clause that states the buyer will beat any competing offer by $2,000 up to a maximum of $350,000. The seller receives a competing offer for $340,000. Under Ohio practice, what is the buyer's offer price under the escalation clause?
Next Question
James, a buyer in Lorain County, Ohio, submits an offer on a foreclosed property owned by a bank. The bank's asset manager accepts the offer but adds a clause requiring James to waive the inspection contingency. Under Ohio law, which statement is correct?