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"Assuming a REPC is accepted on January 25th and a check for $1,000 earnest money is given the same day, what is the latest it can be deposited into the Brokerage Trust Account?

(a) January 28
(b) January 26
(c) February 1
(d) January 29"

1 Answer

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Final answer:

In a real estate transaction involving an REPC, earnest money is typically required to be deposited within three business days upon acceptance. Since the REPC was accepted on January 25th, the latest the earnest money check can normally be deposited into the Brokerage Trust Account is January 28th, unless affected by weekends or public holidays.

Step-by-step explanation:

The subject of the question relates to the handling of earnest money in a real estate transaction. The Real Estate Purchase Contract (REPC) has been accepted, and the student is asked to identify when the earnest money check must be deposited into the Brokerage Trust Account. Typically, real estate regulations require that earnest money be deposited within a specific timeframe upon acceptance of the REPC. Without knowing the specific state requirements or assuming any special stipulations within the contract, the standard practice is usually within three business days after acceptance. However, given the possible answer choices, we can rule out any dates beyond three business days. If the REPC was accepted on a January 25th, counting three business days would exclude weekends and possibly public holidays, depending on the location. Therefore, the latest it can be deposited would normally fall on January 28th if there are no intervening weekends or holidays.

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