A California salesperson receives an earnest money deposit check from a buyer made payable directly to the salesperson. Under California law, what is the salesperson's required course of action?
Correct Answer
B) Return the check and instruct the buyer to reissue it payable to the broker's trust account or the designated escrow company
Under California Business and Professions Code §10145 and §10137, salespersons are prohibited from receiving trust funds in their own name. All earnest money and trust funds must be handled through the supervising broker's trust account or a designated escrow company. A check made payable to the salesperson personally cannot be properly deposited into a trust account and must be returned so the buyer can reissue it to the correct payee.
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A buyer directly asks a seller's agent whether anyone has ever died in the property. The only death on record occurred four years ago from natural causes. Under California Civil Code §1710.2, how must the agent respond?
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