Minnesota State Real Estate Practice Test 2025 - Free Real Estate Practice Questions and Study Guide

In Minnesota, the earnest money statute specifies that funds must be deposited into a trust account within three business days after the acceptance of the offer. This requirement establishes a clear timeline for handling earnest money, ensuring that there is a formal and secure process in place for holding funds that indicate a buyer's serious intention to complete the purchase.

This regulation aims to protect both buyers and sellers in a real estate transaction. By requiring the funds to be deposited in a trust account shortly after the offer is accepted, it minimizes the risk of mismanagement or misuse of the earnest money. It also assures buyers that their funds are safeguarded in a neutral environment until the transaction reaches closing, at which point the earnest money is typically applied to the buyer's closing costs or purchase price.

Other choices might suggest that deposits can be delayed longer or that earnest money can be optional. However, these scenarios do not align with Minnesota statutes, which impose a specific requirement to protect both parties involved in a real estate transaction.