Which of the following statements about earnest money deposits under Utah law is correct?

Under Utah law, the correct statement regarding earnest money deposits is that they must be deposited within 3 days after acceptance of the purchase agreement. This requirement is in place to protect both the buyer and the seller by ensuring that the earnest money, which signifies the buyer's good faith intention to proceed with the purchase, is handled in a timely manner.

When earnest money is deposited, it helps to demonstrate the buyer's commitment to the transaction, which is crucial in real estate agreements. If earnest money were to be deposited immediately on acceptance, it could lead to issues if the buyer intends to reconsider or if conditions arise that prompt withdrawal from the contract. Thus, having a specific timeframe allows for due diligence while still providing a structure that both parties must adhere to.

The framework does not allow for a flexible timeline where the earnest money can be deposited any time before the closing, as this would undermine the significance of the deposit itself and could lead to uncertainty in the transaction timeline. In contrast, waiting for 2 days would not align with the established legal requirement, making the 3-day period the correct standard.