Brokerage: 5 Business Days Deposit
The Listing Brokerage has 5 business days to deposit the down payment money in the trust fund. My understanding is that the 5 days start when the Cooperating Brokerage receives the money/cheque from the Buyer. But I also understand that the money is to be deposited once the Offer is accepted and not before that. So if the Buyer gives money to the Cooperating Brokerage, do the five days start once the Offer is accepted regardless of whether the Buyer gave money prior to the deal becoming firm?
1) The 5 days start when the Listing Brokerage receives the money/cheque from the Buyer (usually via the Cooperating Brokerage.
2) The Cooperating Brokerage does not have the funds for deposit to its account, the deposit cheque is payable to the Listing Brokerage in trust.
3) If an amount of money comes into a Brokerage’s hands in trust for another person in connection with the brokerage’s business… (General Reg. s. 17):
- This is the actual key
- This has nothing to do with the deal
- Offer/acceptance etc. doesn’t matter
- Conditional/unconditional doesn’t matter
- Once the Brokerage gets the money the clock starts.
4) We are dealing with the Listing Brokerage, only, at this point.
5) This obligation could be handled differently, if the cheque was delivered “in escrow”, then we would be working with a delayed “trigger date”.
6) The first day doesn’t count, Day 1 is the next day.
7) All days are “business days” except Saturdays.
Brian Madigan, Broker