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Connecticut · Conn. Gen. Stat. §§20-324k, 20-325mConnecticut earnest money and broker records: the three-banking-day deposit and the seven-year file

Every Connecticut broker who holds money for others in the course of its real estate business keeps a separate escrow or trust account in a bank doing business in the state (Conn. Gen. Stat. §20-324k(a)). Earnest money, down payments, deposits and other trust funds go into that account within three banking days of the date the agreement is signed by all necessary parties, and stay there pending final disposition under the instructions of whoever is legally entitled (§20-324k(c)); in a lawsuit, the court may let the broker deposit the funds with the court and be dismissed from claims (§20-324k(d)). The broker keeps purchase contracts, leases, options, offers and counteroffers it drafted, listing and buyer or tenant representation agreements with their amendments and required disclosures, and escrow account records for at least seven years after the later of closing, disbursement of escrowed funds or the agreement's expiration – electronically, unless that's commercially impractical (§20-325m(a), (c)).

The rules

  1. 1. Escrow account (§20-324k(a))

    Separate account in a bank doing business in Connecticut.

  2. 2. 3 banking days (§20-324k(c))

    From the date all necessary parties sign the agreement.

  3. 3. Disputes (§20-324k(d))

    The court may take the funds and dismiss claims against the broker.

  4. 4. 7-year records (§20-325m)

    Contracts, offers, agreements, disclosures and escrow records; electronic format.

What the TC can do

  • Count three banking days from the last signature and get the escrow deposit receipt.
  • Send the complete file to the broker – drafts, offers, counteroffers and disclosures included.
  • Store the file electronically so it can produce accurate copies for seven years.

Questions about Connecticut earnest money

When must a Connecticut broker deposit earnest money?

Within three banking days of the date the agreement is signed by all necessary parties (Conn. Gen. Stat. §20-324k(c)).

How long does a Connecticut broker keep transaction records?

At least seven years after the later of closing, disbursement of escrowed funds or the agreement's expiration (§20-325m(a)).

Related guides

Track the escrow deposit deadline as a task in ClosingCode and keep the full file on the deal.

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Source: Connecticut General Statutes §§20-324k and 20-325m (cga.ct.gov, read October 26, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.