Delaware License Law
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 receipt — not commingled with operating funds✓ Correct
CEarnest money may be held by the agent until the contract is accepted by the seller
DEarnest money may be deposited into the broker's personal account for safekeeping
Explanation
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. Detailed records of all escrow deposits and disbursements must be maintained. Failure to properly handle earnest money is a serious license violation.
Related Delaware Delaware License Law Questions
- Under Delaware license law, conversion of client funds is:
- Under Delaware law, a licensee who is involved in a transaction where they have a conflict of interest must:
- In Delaware, which of the following best describes a 'broker-associate'?
- What must a Delaware broker do if a salesperson affiliated with them leaves to join another broker?
- Under Delaware law, if a broker dies, the affiliated licensees:
- A Delaware broker must maintain a separate trust account for client funds. Commingling refers to:
- Under Delaware license law, which activity does NOT require a real estate license?
- An out-of-state broker wishing to do business in Delaware must:
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →