A buyer and seller in Virginia have a ratified purchase agreement. The seller's agent receives the buyer's earnest money check for $8,000. Under Virginia regulations, by when must the broker deposit the earnest money into the escrow/trust account?
Correct Answer
C) Within 5 business days of the contract ratification date
Under 18 VAC 135-20-180, a Virginia real estate broker must deposit earnest money and other client funds into a federally insured escrow or trust account within five business days of the contract ratification date, unless the purchase agreement specifies a different time. This is a specific Virginia regulatory requirement that is frequently tested.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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