Jennifer, an Ohio buyer, gives her agent a personal check for $3,000 as earnest money along with her purchase offer. The seller has not yet accepted the offer. Under Ohio law, when does the broker's obligation to deposit the earnest money begin?
Correct Answer
C) Upon receipt, the broker must deposit within 2 banking days per ORC §4735.24
Under ORC §4735.24, the 2-banking-day deposit requirement begins upon receipt of the earnest money, regardless of whether the offer has been accepted. The broker must deposit the funds even before the seller responds to the offer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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