A buyer in Draper, Utah makes an offer using the Utah REPC with a $15,000 earnest money deposit. The seller accepts the offer, and the buyer's agent is notified on Thursday at 3:00 PM. The buyer's agent deposits the earnest money into the principal broker's trust account the following Monday morning. Under Utah Administrative Code R162-2f, is the earnest money deposit timely?
Correct Answer
C) No, because the deposit was required within two business days of acceptance
Under Utah Administrative Code R162-2f, earnest money received by a licensee must be deposited into the principal broker's trust account within two business days of the offer being accepted. Acceptance was communicated on Thursday at 3:00 PM. Counting two business days forward (Friday and Monday), the deadline would be Monday. However, the deposit on Monday morning would need to be examined against the specific time of acceptance and business day cutoffs. Generally, if acceptance occurred Thursday, the two business days are Friday and the following Monday, making Monday the deadline — but the deposit must occur on that day, not after. If Monday morning is within business hours on that Monday, it is on the deadline. Regardless, the rule is two business days, not three or five, making Option C the correct statement of Utah law.
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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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