Agent Patel is representing a buyer in a Utah transaction. The parties have signed a Utah REPC. The buyer's earnest money check is made out and ready. Under Utah's trust account rules, where must the earnest money be deposited?
Correct Answer
B) Into the principal broker's trust account
Under Utah Administrative Code R162-2f and Utah Code Ann. § 61-2f-401, earnest money received in connection with a real estate transaction must be deposited into the principal broker's trust account within two business days of acceptance. The trust account must be maintained separately from the broker's personal or business operating accounts. The principal broker is responsible for maintaining and properly managing the trust account.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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.
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