Utah · Utah Admin. Code R162-2f-401c, 403aUtah earnest money: the 3-business-day deposit, disputed funds and the records rule

Within three business days of receiving a client's money in a real estate transaction, a Utah principal broker deposits it in its real estate trust account – or, if the parties agree in writing, with a title company or another authorized escrow (Utah Admin. Code R162-2f-401c(1)(h)(i)). That deadline doesn't apply if the contract says the money is held for a specific length of time or deposited on the seller's acceptance, or allows a promissory note payable to the seller that the broker keeps in its file until closing (R162-2f-401c(1)(h)(iii)). The broker needs written consent from both buyer and seller before keeping any part of an earnest money deposit (R162-2f-401c(1)(e)). If both parties make written claims and no signed agreement shows which is valid, the broker may interplead the funds, or – within 15 days of notice of both claims, when no suit is filed and the contract calls for mediation – refer the parties to mediation (R162-2f-403a(8)); funds the broker can't disburse within three years after a failed transaction go to the State Treasurer as unclaimed property (R162-2f-403a(9)). Transaction records are kept at the principal business location or a designated branch, or electronically, for at least three calendar years after the year an offer is rejected or the transaction closes or fails (R162-2f-401c(2)).