Delaware License LawIntermediateDelaware Exam

What is 'earnest money' handling protocol for a Delaware broker?

AEarnest money must be deposited immediately upon receipt without exception
BA Delaware broker must deposit earnest money into a federally insured escrow or trust account within a specified time period (typically 3 business days) of receiptCorrect
CEarnest money may always be held personally by the agent until the moment the contract is formally accepted by the seller, which is the approach most often followed
DEarnest money may be deposited into the broker's personal account for safekeeping

Why A Delaware broker must deposit earnest money into a federally insured escrow or trust account within a specified time period (typically 3 business days) of receipt Is Correct

Answer B: A Delaware broker must deposit earnest money into a federally insured escrow or trust account within a specified time period (typically 3 business days) of receipt

Delaware brokers must deposit earnest money into a separate, federally insured escrow or trust account within 3 business days (or as specified by the contract and Delaware regulations) of receipt. It cannot be commingled with operating funds.

Key Delaware License Law Terms in This Question

Earnest Money

A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.

Escrow

A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.

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