Colorado License LawIntermediateColorado Exam
A Colorado broker who receives an earnest money check on a Friday afternoon should deposit it into trust by:
AThe following Monday morning
BWithin 3 banking business days (by Wednesday, assuming no holidays)Correct
CThe following Friday
DOnly after the inspection period ends, under the applicable standard
Why Within 3 banking business days (by Wednesday, assuming no holidays) Is Correct
Answer B: Within 3 banking business days (by Wednesday, assuming no holidays)
Colorado Commission rules require earnest money deposits to be made within 3 banking business days of receipt. If received Friday, the 3-business-day clock begins the next banking day (Monday), so deposit is due by Wednesday.
Key Colorado License Law Terms in This Question
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
State-Specific Concepts
Escrow Disputes
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