How soon can BICs transfer earnest money for closing?

The correct answer is that BICs (Broker-in-Charge) can transfer earnest money for closing no more than 10 days prior to settlement. This is important because it ensures that the funds are adequately collected and available at the time of closing while also providing a clear timeframe for the transaction processes.

This guideline helps maintain order and accountability in real estate transactions. By establishing a limit on when earnest money can be transferred, it protects both buyers and sellers by preventing any potential misuse of funds and ensuring that all parties are adequately informed about the status of the transaction as they approach the closing date. This standard promotes professionalism and due diligence in managing earnest money deposits within the timeframe required by state regulations.