In a Short Sale, when must the option money be delivered to the seller or seller's agent?

In the context of a Short Sale, the correct timing for delivering the option money is crucial for the transaction to proceed smoothly. When the option money is required to be delivered within 3 days of the original effective date, this stipulation ensures that the seller or seller's agent receives confirmation of the buyer's intent to proceed with the purchase in a timely manner. This prompt action helps solidify the agreement and indicates the buyer's serious interest in the property, allowing for more efficient communication and planning between all parties involved.

The other options suggest timing that does not align with customary practices in real estate transactions. For example, waiting until 5 days of closing or 10 days after contract signing would create uncertainty and potentially jeopardize the short sale process, which often relies on quick decision-making and responsiveness. Delivering the option money at the time of the offer could imply a commitment, but specific terms usually dictate the timeframe to maintain clarity and organization throughout the sale. Therefore, delivering the option money within 3 days of the original effective date is the established protocol that best supports the smooth progress of a Short Sale.