Where must earnest money be deposited in Idaho?
Correct Answer
B) Deposited into the broker's trust account
In Idaho, earnest money received by a broker must be deposited into a separate trust account maintained by the broker. Under Idaho Real Estate Commission rules, brokers are required to deposit earnest money promptly — generally within three banking days of receipt — and keep it in a federally insured trust account until the transaction closes or the funds are otherwise disbursed according to the contract terms.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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.
More Contracts Questions
A Rhode Island salesperson asks about an owner is about to sign a purchase and sale agreement. What is the best answer?
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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