Under what conditions can a deposit check from the buyer be held without being deposited into the broker's escrow account?

A deposit check from the buyer can be held without being deposited into the broker's escrow account for no more than five business days after receipt of the money. This guideline helps ensure the broker has enough time to properly process the funds and secure the transaction without delaying the buyer's opportunity to proceed. It indicates a balance between allowing the seller and the buyer to finalize negotiations while also maintaining compliance with ethical obligations regarding holding client funds.

Holding a deposit check beyond five business days presents risks, such as potential issues with the buyer changing their mind or the offer falling through, which necessitates a timely response to process the funds appropriately. Thus, the five-business-day timeframe provides a reasonable expectation for both parties involved in the transaction, maintaining a standard practice in real estate transactions in New Jersey.