The Florida Real Estate State Exam can be frustrating at best with some of the most popular topics.
Classic Real Estate School Jacksonville/Orange Park and Orlando/Clermont will often blog about topics that students have difficulty on that would most likely show up as a question. that would appear on the real estate exam.
Today’s topic – Escrow Deposits.
When a Brokerage holds escrow deposits, there is a specific time frame in which the agent has to have the money to the Broker and the Broker has a specific “no later than” date that the funds have to be deposited in the escrow account.
The agent has to have the deposit to the Broker by end of the next business day; weekends and federal holidays do not count. The Broker has to have the funds deposited into the escrow account no later than end of the 3rd business day; weekends and federally holidays do not count.
(A federal holiday is the day the bank is closed for observance)
Sometimes the time frame for the Sales Associate and the Broker can be difficult to determine based on the way a question is presented.
For this reason, Classic Real Estate School has come up with the following “Dollar Day Example” for it’s students. The first day the deposit is received (and it doesn’t matter who receives the earnest money; the Associate or the Broker) is the $ day and does not count!
$ 1 2 3
The day the money is received is $ day. The next business day (1), the Sales Associate must have it to the Broker by the close of business. On the third business day (3), the Broker must have the money deposited in the escrow account by the close of business.
Associate receives earnest money on Thursday ($ Day) This day does NOT count!
Associate must have the earnest money to Broker by end of business on Friday (1)
Broker must have earnest money deposited in the escrow account by the end of business day on Tuesday (3)
If you have any questions, please feel free to contact Classic Real Estate School for further assistance.