Tom is a licensed salesperson in Delaware who has just received an earnest money deposit check from his buyer client, Kevin. According to Delaware license law, what must Tom do with this deposit check?
Correct Answer
C) Turn it over to his supervising broker promptly for deposit into the broker's trust account
Under the Delaware Real Estate Licensing Act (24 Del. C. Chapter 29), a salesperson who receives earnest money or other client funds must promptly turn those funds over to the supervising broker. The broker is then responsible for depositing the funds into a properly maintained trust (escrow) account. A salesperson has no authority to independently hold or deposit client funds.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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