Real estate broker Sarah discovers that her sales associate Mark has been placing earnest money deposits into his personal checking account instead of the broker's escrow account. Mark claims he always transfers the funds within 24 hours. What should Sarah do according to Florida law?
Correct Answer
B) Immediately notify FREC and terminate Mark's association
Correct: B - Placing client funds in personal accounts is a serious violation requiring immediate action and FREC notification. Why not A: Personal account deposits are never acceptable regardless of transfer timing. Why not C: Written warnings are insufficient for this serious violation. Why not D: Additional education doesn't address the immediate legal violation.
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