Law requires brokers deposit funds no later than:
Question & Answer
Review the question and all answer choices
the 5th business day
A is incorrect because 5 business days is too short a timeframe for Maryland brokers. While some states may have shorter requirements, Maryland specifically mandates a 7-business-day period.
the 7th business day
the 14th business day
C is incorrect because 14 business days exceeds Maryland's requirement. While brokers might sometimes take longer to close transactions, funds must be deposited within the 7-business-day window regardless.
the 21st business day
D is incorrect because 21 business days is significantly longer than Maryland's requirement. This timeframe might apply to other aspects of real estate transactions but not to fund deposit requirements.
Why is this correct?
B is correct because Maryland law specifically requires brokers to deposit client funds into their trust account within 7 business days of receipt. This timeframe provides a reasonable period for processing while ensuring client funds are protected.
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