How many business days does a licensee have to place earnest money into escrow?

The requirement for placing earnest money into escrow after a purchase agreement is significant as it ensures that the buyer's intent is serious and protects the interests of both parties involved in a real estate transaction. In Kentucky, a licensee has a duty to act promptly and responsibly, and thus must place the earnest money in an escrow account within three business days of the contract date. This timeframe establishes a clear guideline for timely handling of funds, which is critical in maintaining trust and good faith in real estate dealings. Failure to do so can lead to complications or erosion of trust between the parties involved, which is why this specific timeframe is mandated.