Washington State Real Estate Practice Exam

Is it true or false that Washington State requires real estate brokers to deposit earnest money funds in a trust account promptly?

1. True

2. False

3. Only for certain types of transactions

4. Only if the seller requests it

The correct answer is: True

In Washington State, real estate brokers are indeed required to deposit earnest money funds in a trust account promptly. This is a fundamental component of real estate practice that ensures the security and proper handling of clients' funds. The law mandates that any earnest money received from a buyer must be deposited into a trust account as soon as possible, typically within a few business days. This requirement protects both buyers and sellers by ensuring that earnest money is not misappropriated and is handled ethically and transparently. The swift deposit of earnest money into a trust account provides a safeguard for the transaction, offering reassurance to all parties involved that the funds are secure and will be managed in accordance with state regulations. This practice is crucial for maintaining trust in the real estate transaction process. While other options may suggest varying conditions under which earnest money should be handled, these do not align with the statutory requirements established in Washington State. Therefore, prompt deposit into a trust account reflects the overarching legal obligation brokers have to their clients.