How long does a broker have to deposit escrow funds after receipt?

• A. Within 3 business days after receipt
• B. Immediately after receipt
• C. End of the 5th business day following receipt
• D. End of the 3rd business day following receipt

Answer: (D)

Escrow funds are client money that a broker must place into a trust account without unnecessary delay. The requirement is to deposit these funds within three business days after the broker receives them. Counting uses business days only, so weekends and holidays don’t push the deadline later. The concrete cutoff is the end of the third business day after receipt, which means if funds arrive on Friday, they must be deposited by the end of Tuesday. If a holiday comes up, the count moves to the next business day. This provides a clear, enforceable timeline that protects all parties while allowing enough time to verify and handle the funds properly.