A Wisconsin buyer submits an offer on a property using the WB-11 form. The offer includes an earnest money check for $5,000 made payable to the listing broker. Under Wisconsin Administrative Code REEB 16, when must the broker deposit this earnest money into the trust account?
Correct Answer
D) No later than the next business day after the broker receives the earnest money.
Under Wisconsin Administrative Code REEB 16, a broker who receives earnest money or other client funds must deposit those funds into the trust account no later than the next business day after receipt. This is a strict Wisconsin-specific rule governing trust account handling. The timing is based on when the broker receives the funds, not when the offer is accepted.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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