In Pennsylvania, earnest money deposits must be placed in escrow within:
Question & Answer
Review the question and all answer choices
The end of the next business day
24 hours
Option B (24 hours) is incorrect because Pennsylvania law specifically references business days, not a strict 24-hour period. This distinction is important as it accounts for weekends and holidays when offices may be closed.
A reasonable time as agreed in writing
Option C (reasonable time as agreed in writing) is incorrect because Pennsylvania law establishes a specific timeframe, not leaving it to agreement between parties. This statutory requirement ensures consistency and protection for consumers.
5 business days
Option D (5 business days) is incorrect because it represents a much longer timeframe than Pennsylvania requires. This longer period might be found in other states or for different types of transactions, but not for earnest money deposits in PA.
Why is this correct?
Pennsylvania requires earnest money to be deposited by the end of the next business day following acceptance of the agreement of sale.
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