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In Georgia, earnest money must be deposited within:

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Question & Answer

Review the question and all answer choices

A

24 hours

A 24-hour deposit requirement is not the standard in Georgia and would be impractical given that contracts are often signed late in the evening or on weekends when banks are closed; no state uses a 24-hour earnest money deposit rule.

B

5 banking days of acceptance

Correct Answer
C

10 business days

Ten business days is far too long a period and does not reflect Georgia law; allowing 10 days before depositing earnest money would leave buyer funds unprotected and create significant risk of broker misconduct or insolvency during that window.

D

As agreed in the contract

'As agreed in the contract' is an appealing distractor because contracts can indeed specify many things, but Georgia law sets a mandatory maximum deposit deadline of 5 banking days that cannot be waived or extended by private contract agreement between the parties.

Why is this correct?

Under Georgia Real Estate Commission Rule 520-1-.08 and standard Georgia real estate practice, earnest money must be deposited into a trust or escrow account within five banking days of the binding agreement date β€” the date on which the last party signs and the contract becomes fully executed. The 'binding agreement date' trigger is specifically defined in Georgia law and standard GAR contract forms, making it a precise legal term rather than a casual reference to 'acceptance.' This 5-banking-day window is one of Georgia's most frequently tested real estate license law provisions.

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