Which statement reflects the timing for broker trust account deposits?

• A. Within 2 banking days after notice that all parties have signed
• B. Within 30 days
• C. Upon closing
• D. After receipt of a written notification from seller

Answer: (A)

Prompt handling of earnest money is the key idea here: funds must be deposited into the broker’s trust account promptly once the contract is fully executed. In Michigan practice, that means within two banking days after notice that all parties have signed the agreement. This timing protects everyone by securing the funds early and creating a clear, auditable record of the contract becoming binding. Waiting longer—such as 30 days—leaves funds unprotected in the trust account and creates risk for both buyer and seller. Depositing at closing defeats the purpose of the earnest money, which is to demonstrate serious intent and secure performance before closing. Waiting for a seller’s written notification isn’t the trigger because the contract is formed when all parties have signed, not when the seller issues a notice.