If a deposit is paid to a salesperson, what is the proper handling?

• A. The salesperson must refuse to accept the deposit.
• B. The salesperson may accept the deposit and place in their personal account.
• C. The salesperson may accept the deposit and forward it to the broker.
• D. The salesperson can deposit the funds into the brokerage's trust account.

Answer: (A)

The key idea is that earnest money or deposits are trust funds and must be handled only through the broker's control. A salesperson should not keep or deposit funds in a personal or non-trust account. The proper handling is to promptly deliver the deposit to the broker so they can place it into the brokerage’s trust (escrow) account. This maintains proper accounting, avoids commingling, and complies with real estate laws and firm policy.

Why other approaches aren’t appropriate: refusing the deposit isn’t appropriate because funds are expected to be received and handled correctly; putting funds into a personal account violates trust-fund rules; and depositing directly into the brokerage’s trust account without the broker’s involvement (or without the broker’s authority) bypasses proper oversight. The correct flow is to forward the deposit to the broker for deposit into the trust account.