An Ohio broker receives a $20,000 earnest money check. Before the broker can deposit the check, the buyer calls and asks the broker to hold the check uncashed for 3 days until the buyer transfers funds. Under ORC §4735.24, how should the broker respond?
Correct Answer
C) Deposit the check within 2 banking days regardless of the buyer's request
Under ORC §4735.24, the broker must deposit the earnest money within 2 banking days of receipt. The broker cannot agree to hold a check uncashed at the buyer's request, as this would violate the statutory deposit requirement. The buyer should have ensured funds were available before writing the check.
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Related Topics & Key Terms
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Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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.
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