When must a broker deposit a buyer's deposit into escrow?

In Connecticut, a broker is required to deposit a buyer's earnest money deposit into an escrow account within 24 hours of receipt. This protocol is designed to ensure that the funds are secured and handled appropriately, providing both the buyer and seller with assurance that the deposit is safeguarded during the transaction process. The 24-hour timeframe reflects the importance of timely action in real estate transactions, helping to maintain a level of trust and professionalism in the handling of financial deposits.

Other options suggest varying time frames that do not align with state regulations, making them less suitable. For example, needing to deposit the funds immediately may not allow for administrative processes that could be required by the brokerage. Similarly, a requirement of five days or one week would not uphold the expectation of promptness in securing the buyer's deposit, potentially leading to complications in the transaction process. Thus, the requirement for a 24-hour timeframe strikes a balance between diligence and practicality in real estate practices.