Unless otherwise agreed to in writing, when must an earnest money payment be deposited in the escrow account?

Depositing earnest money prior to closing is not a standard requirement. While earnest money is important for the closing process, the specific timeline for its deposit is dictated by the terms of the contract, which typically states that it should be placed in escrow within a defined period after ratification, not necessarily prior to closing.

While prompt handling of earnest money is encouraged, the requirement is not to deposit it immediately upon receipt unless specifically stated in the contract. The standard practice allows for a defined timeframe (such as within 5 business banking days) to ensure all parties have adequate time to manage the transaction properly.

This option misrepresents the timing of the earnest money deposit. The deposit is not contingent upon the buyer securing financing; rather, it is required after the contract is ratified. This provision helps to solidify the buyer's commitment regardless of their financing status.