Sandra, a Washington licensed broker, receives a $15,000 earnest money check from a buyer on a Friday afternoon after banking hours. The following Monday is a federal holiday. When must Sandra's firm deposit the earnest money into its trust account at the latest?
Correct Answer
A) The following Thursday, counting three banking days from the Monday holiday
Under WAC 308-124D, earnest money must be deposited within three banking days of receipt. Banking days exclude weekends and federal holidays. The check was received Friday after banking hours, so the three-banking-day period begins the next banking day, which is Tuesday (Monday is a federal holiday). Counting three banking days: Day 1 = Tuesday, Day 2 = Wednesday, Day 3 = Thursday. The firm must deposit the funds by Thursday.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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