Salesperson Kevin received a $5,000 earnest money deposit from a buyer on a Friday afternoon. Kevin works under Principal Broker Susan at Coastal Realty. Under Virginia law and VREB regulations, by when must this deposit be placed into the firm's escrow (trust) account?
Correct Answer
B) By the end of the fifth business banking day following ratification of the contract
Under Va. Code § 54.1-2108.2, an earnest money deposit held by a real estate firm must be placed in the firm's escrow account by the end of the fifth business banking day following the ratification of the contract, unless the contract specifies otherwise.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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