A brokerage receives a $5,000 earnest money check from a buyer. Under most state laws, by when must the broker deposit the check into the trust account?

Trust account deposit timing is a heavily regulated area. While the exact time frame varies by state, the universal rule is that earnest money and other client funds must be deposited PROMPTLY — typically within 1 to 5 banking days. Common state requirements include: Florida (3 business days after offer acceptance); Texas (no specific number but 'promptly'); California (3 business days for funds received in trust); Illinois (next business day for deposits in standard cases); North Carolina (3 banking days); many states (1-2 business days). Some states have provisions for: (1) DELAYED DEPOSIT — the buyer can request in writing that the check be held until offer acceptance, in which case the broker holds it but the time frame restarts when the offer is accepted; (2) UNCASHED HOLD — only with specific written authorization. KEY RULES: (1) The broker cannot 'hold' a check indefinitely just because someone asks verbally; (2) The broker cannot deposit it into the operating account, even temporarily; (3) The broker cannot delay deposit to give the buyer time to fund their account — knowing deposit timing rules helps the buyer fund in time; (4) If the check bounces, the broker may need to disclose this to the seller depending on contract terms. COMMINGLING (mixing client funds with broker's personal or operating funds) is one of the most serious violations and grounds for license revocation in most states. The broker must maintain SEPARATE trust accounts (state may require interest-bearing or non-interest-bearing depending on jurisdiction). RECONCILIATION is typically monthly — comparing bank statement to broker's records of who owns each dollar. Discrepancies must be investigated immediately. Some states require trust account audits by the commission, sometimes randomly.