When a broker receives a deposit, the funds must be deposited into the trust account within how many banking days after notice that all parties have signed the purchase agreement?

• A. 2 banking days after notice that all parties have signed the purchase agreement
• B. Immediately upon receipt
• C. 5 banking days after receipt
• D. 30 days after receipt

Answer: (A)

The key idea is when earnest money must be placed into the broker’s trust account. In Michigan, once the broker has notice that all parties have signed the purchase agreement, the funds must be deposited within two banking days. This creates a prompt, but not instantaneous, safeguard for the money while giving the broker a short window to process the payment and document the transaction.

For example, if notice is received on Monday, the deposit should be made by the end of the second banking day (typically Wednesday, unless a holiday intervenes). This timing helps protect both buyer and seller by ensuring the funds are securely held in trust promptly.

The two-day window is specifically chosen—not immediate upon receipt and not longer than two banking days—because it provides a clear, enforceable timeline while recognizing practical steps the broker must take to verify and process the deposit.