When must an agent deposit an earnest money check with an escrow agent?

An agent must deposit an earnest money check with an escrow agent by the end of the second business day after receipt. This requirement ensures that the buyer's earnest money is handled promptly and according to the established practices and regulations. Timely deposit of earnest money is critical in real estate transactions because it demonstrates the buyer's seriousness in purchasing the property and helps establish a formal commitment to the terms of the contract.

By setting this timeline, the rules promote accountability and transparency in real estate dealings. It helps protect both parties involved in the transaction, as it clarifies expectations around the handling of funds and ensures that earnest money is secured within an appropriate timeframe. The choice that indicates "immediately upon receipt" would be too strict and not feasible in many situations where practicalities must be considered. Additionally, waiting until the closing date would not meet the necessary requirements and could lead to complications in the transaction. The option of "within 24 hours" does not match the exact regulatory timeframe which specifies two business days, making it less accurate.