Colorado License Law

Under Colorado rules, a broker who receives earnest money in the form of a personal check may:

ANever accept personal checks for earnest money
BHold the uncashed check if instructed by the parties and authorized by the contract✓ Correct
CDeposit it in their personal account temporarily
DReturn it immediately since only certified funds are acceptable

Explanation

Colorado Commission rules allow a broker to hold an earnest money check uncashed if all parties agree and the contract specifically provides for this. The check must be deposited within the required timeframe unless the contract states otherwise.

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