Real Estate Training Institute

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A. The responsible broker is responsible at all times for earnest money…

The responsible broker is responsible at all times for earnest money deposits.  Earnest money accepted by the broker or any licensee for which the broker is responsible and upon acceptance of a mutually agreeable contract is required to deposit the money into a trust account prior to the close of business of the next banking day.  The responsible broker is required to promptly account for and remit the full amount of the deposit or earnest money at the consummation or termination of transaction. A licensee is required to pay over to the responsible broker all deposits and earnest money immediately upon receipt thereof.  Earnest money must be returned promptly when the purchaser is rightfully entitled to same allowing reasonable time for clearance of the earnest money check.  In the event of uncertainty as to the proper disposition of earnest money, the broker may turn earnest money over to a court of law for disposition.  Failure to comply with this regulation shall constitute grounds for revocation or suspension of license.

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