What is the correct answer to: When must a broker deposit funds into trust account in Delaware?

The correct answer is Within 72 hours. Answer A is correct because Delaware real estate regulations specifically require that a broker deposit funds received in connection with a real estate transaction into a trust or escrow account within 72 hours of contract execution. This 72-hour rule is a firm statutory deadline under Delaware's real estate licensing law, and failure to comply can result in disciplinary action against the broker's license, including fines or suspension. The rule applies regardless of whether the contract is contingent or whether the transaction is expected to close.

What background knowledge is needed for this Practice Of Real Estate question?

Trust account requirements for real estate brokers emerged as a response to widespread misuse of client funds in the early 20th century, when brokers routinely held earnest money in personal accounts and sometimes spent or lost those funds before transactions closed. States began enacting trust account statutes in the mid-20th century, with varying deadlines for deposit. Delaware's specific 72-hour rule reflects a legislative judgment that this timeframe balances operational practicality — brokers need some time to process paperwork and make banking arrangements — with robust consumer protection. Delaware's real estate licensing laws are administered by the Delaware Real Estate Commission under Title 24 of the Delaware Code.

What is a good way to remember the answer to this Practice Of Real Estate question?

Remember '72 hours in Delaware' by thinking of the number 72 as the temperature of a comfortable room — Delaware wants your client's money to be safely 'housed' in a trust account within 72 hours, just as you'd want to be in a comfortable house within 3 days of arriving in a new city. Alternatively, use the phrase 'Three Days, First State' — Delaware is the First State, and it gives brokers three days (72 hours) to deposit funds. Remember the rhyme 'Three days, not five' to recall Delaware's 72-hour requirement versus the common 5-day misconception.

What exam tip applies to this Practice Of Real Estate question?

For state-specific trust account timing questions, the exam will often list multiple plausible-sounding timeframes. Eliminate 'ASAP' answers first, as they are too vague for a statutory requirement. Then focus on whether the question is asking for calendar hours (72 hours) versus business days — Delaware uses 72 continuous hours, which is a stricter standard than '3 business days' and is a common point of confusion on state-specific exams.

How does this Practice Of Real Estate concept apply in real world practice?

A buyer in Wilmington, Delaware, signs a purchase contract on a Friday afternoon and writes a $5,000 earnest money check to the listing broker. The broker cannot simply lock the check in a desk drawer until Monday morning banking hours are convenient — under Delaware law, the clock starts at contract execution, and the broker has 72 hours (by Monday afternoon) to deposit those funds into the firm's trust account. If the broker deposits the check on Tuesday, they are already in violation of Delaware's trust account rules and could face a complaint to the Delaware Real Estate Commission.

Practice Of Real EstateLicense LawMEDIUM

When must a broker deposit funds into trust account in Delaware?

Correct Answer

A) Within 72 hours

Within 72 hours of contract execution.

Answer Options

Within 72 hours

Within 5 business days

ASAP unless contract states otherwise

After all signatures

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Price Fixing

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

Record Keeping Requirements

Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.

Tie-In Arrangement

A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.

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When must a broker deposit funds into trust account in Delaware?

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Why the Other Options Are Wrong

Deep Analysis of This Practice Of Real Estate Question

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