Housing and Community Development (HCD) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Housing and Community Development Exam. Engage with interactive tools, simulate real exam conditions, and access hints with explanations for each quiz question.

Practice this question and more.

How soon must a dealer place a deposit into escrow after receipt?

Within 10 calendar days of the receipt
Within 7 working days of receipt
Within 5 working days of receipt
Immediately upon receipt

The correct answer is: Within 5 working days of receipt

A dealer is required to place a deposit into escrow within 5 working days of receipt. This timeframe ensures that deposits are handled promptly and securely, maintaining the trust between the dealer and the client and adhering to legal and regulatory frameworks governing the transaction. The rule is in place to protect consumer interests and promote responsible business practices. While other time frames such as 10 calendar days or 7 working days may seem reasonable, they do not align with the specific requirements set forth in this context. The emphasis on "working days" also underscores the importance of business operations being conducted effectively within the appropriate time scale. This standard helps to avoid delays in transaction processing, ensuring all parties are kept informed about the status of their deposits.