A broker must deposit funds in escrow by when in Pennsylvania?
Question & Answer
Review the question and all answer choices
End of second business day
Option A is incorrect as Pennsylvania does not follow the 'end of second business day' rule. This timeframe might apply to other states or specific transaction types, but not to general escrow deposit requirements in PA.
End of third business day
Option B is incorrect because the 'end of third business day' requirement does not align with Pennsylvania's stricter consumer protection standards for escrow deposits.
End of fifth business day
Option C is incorrect as the 'end of fifth business day' is significantly longer than Pennsylvania's requirement and could expose clients to unnecessary risk.
End of business day following receipt
Why is this correct?
Option D is correct because Pennsylvania law requires brokers to deposit funds in escrow by the end of the business day following receipt. This ensures maximum protection of client funds and prevents commingling of personal and client funds, which is strictly prohibited.
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