Around the holiday season more than any other time of the year I find I am frequently asked when agents need to turn in their clients’ earnest money deposit checks (also referred to as escrow deposits). The answer is the same as it is any other day of the year – as soon as possible!
18 VAC 135-20-180, B., 1., a. of the Real Estate Board Regulations stated that for purchase transactions “Upon the ratification of a contract, earnest money deposits and down payments received by the principal broker or supervising broker or his associates must be placed in an escrow account by the end of the fifth business banking day following ratification, unless otherwise agreed to in writing, and shall remain in that account until the transaction has been consummated or terminated.”
Keep in mind, however, that just because the Virginia Real Estate Board (VREB) states we have five days from ratification to deposit the check, an agent’s brokerage company still needs to process the transaction before depositing the check. Agents, do you brokers and your office support a favor this holiday season and turn in your EMD as soon as you get ratified!