All trust funds received by a broker on behalf of the principals must be deposited in the broker's escrow or trust account or with an escrow agent named in the contract by the close of business on the

A) second working day, or as agreed upon in writing by the parties to the contract.
B) fifth working day, or as agreed upon in writing by the parties to the contract.
C) third working day, or as agreed upon in writing by the parties to the contract.
D) tenth working day, or as agreed upon in writing by the parties to the contract.

Answer: A) second working day, or as agreed upon in writing by the parties to the contract.
TREC rules require that other people's money, such as earnest money and security deposits, if held by the broker as escrow agent or trustee for the funds, must be deposited by the close of business the second working day the license holder receives the money as escrow agent in a real estate transaction after the agreement becomes a binding contract. That is unless another time has been agreed to by the parties in writing. Note: The TREC promulgated contract forms are worded such that neither broker is required by the contract to ever even see the earnest money check. The TREC promulgated contract forms state that "upon execution of this contract by all parties, Buyer shall deposit...." This contractual provision places the burden for deposit of the earnest money on the buyer and does not allow for a "close of business the second working day" provision. Under the terms of the buyer's offer, if using a TREC promulgated form, the seller's broker appears to have no contractual right to require that the earnest money or earnest money check be submitted with the buyer's offer. Requiring photocopies of the buyer's earnest money check to show to the seller is likely a meaningless and unnecessary gesture.