Where must a salesperson deliver a deposit once received?

• A. The buyer
• B. The seller
• C. The mortgage lender
• D. His/her employing Broker

Answer: (D)

Earnest money deposits are trust funds that must be handled by the broker, not kept by the salesperson or given to the other party. When a salesperson receives a deposit, the correct action is to deliver it promptly to their employing broker, who places it into the broker’s escrow (trust) account and manages disbursement according to the contract and state law. This arrangement protects both buyer and seller and ensures proper accounting and avoidance of commingling funds. Delivering the deposit to the buyer, seller, or mortgage lender would bypass the broker’s fiduciary duty and violate license rules.