SC earnest money must be deposited:
Correct Answer
B) In the broker's trust account by the end of the next banking day after contract acceptance, unless the contract specifies otherwise
SC regulations require earnest money to be deposited into the broker's trust account by the end of the next banking day following contract acceptance. If the contract specifies a different timeframe, that timeframe controls; however, the default rule is the next banking day after acceptance.
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Related Topics & Key Terms
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Related Concepts
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.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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