Maine Real Estate License Practice Exam

Within how many business days must earnest money be deposited in the trust account after offer acceptance?

1. Immediately

2. 3 days

3. 5 days

4. 7 days

The correct answer is: 5 days

The requirement for earnest money to be deposited in the trust account within five business days after the acceptance of an offer is rooted in real estate regulations designed to protect all parties involved in a transaction. This timeframe allows sufficient time for the real estate broker or agent to ensure the funds are properly secured, while also providing necessary due diligence and administrative practices. Depositing earnest money promptly is crucial because it reflects the buyer's commitment to the purchase and signifies that they are serious about following through on the real estate transaction. If the money is not deposited within this timeframe, it could potentially lead to complications, including legal disputes or issues with the purchase agreement. Choosing a timeframe that is too short, like immediately or within three days, may not allow agents sufficient time to manage paperwork and logistics. Similarly, allowing a longer period, such as seven days, might raise concerns about the security of the funds and the buyer's intent in the purchase process. Thus, five days represents a balanced approach that aligns with best practices in the industry.