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1 year ago

When may a broker NOT place an earnest money deposit in his escrow account?

1 answer:

4 0

As soon as an agent or a broker accepts an earnest money deposit on behalf of a seller, they become an escrow agent, and the money is placed in an escrow account.

So whenever a licensed real estate firm or an agent holds any earnest money, it must be deposited in a trust or escrow account until the closing. The earnest money deposit is said to be mandatory as the deposit gives buyers the time required to sort out their finances, conduct inspections, and evaluate investment, before a deal is closed.

However, if the buyer does not deposit the earnest money with the escrow agent within a reasonable time after contract execution, the buyer thus would be in default.

Hence, an escrow account is one which you fund each month.

To learn more about escrow account here:

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3 years ago

Expenses are recorded as costs of doing business whether cash was paid or not. True or False

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3 years ago

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3 years ago

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Answer:

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