By what time must a broker deposit earnest money into an escrow account after an accepted offer?

The correct answer is that a broker must deposit earnest money into an escrow account until close of business (COB) of the second business day after acceptance of the offer. This requirement is specified in Texas real estate regulations to ensure that earnest money is handled promptly and responsibly. The two-day window allows for the practical logistical considerations involved in transferring funds, while also providing a safeguard to both the buyer and seller regarding the commitment being made in the transaction.

By adhering to this timeframe, brokers can maintain compliance with the ethical standards and operational norms established by the Texas Real Estate Commission. This helps to foster trust among all parties in the real estate process and to ensure that transactions proceed smoothly without unnecessary delays.