Under a TREC contract, earnest money must be deposited within how many days after execution?
Question & Answer
Review the question and all answer choices
1 day
A is incorrect because Texas law does not require earnest money to be deposited within 1 day. This timeframe is too short for typical transactions and would create unnecessary pressure on buyers.
3 days
B is incorrect because while 3 days might be a common timeframe in some transactions, it is not a requirement under TREC contracts. The actual timeframe is always specified in the contract itself.
5 days
C is incorrect because 5 days is not a mandated timeframe in Texas. This option represents an assumption about a standard timeframe that doesn't exist in TREC regulations.
As specified in the contract
Why is this correct?
Answer D is correct because TREC contracts explicitly state the earnest money deposit timeframe in the earnest money section, which is negotiated by the parties and varies based on their agreement. This contractual specification supersedes any assumed standard timeframe.
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