Broker Johnson receives a $5,000 earnest money check on Friday afternoon after banking hours. Under GREC trust account rules, by when must this check be deposited into the broker's trust account?
Correct Answer
B) By the close of business the following Tuesday
Under GREC Rule 520-1-.09, earnest money must be deposited into the broker's trust account within a timely manner consistent with GREC requirements. Since the check was received Friday after banking hours, Friday does not count as a banking day for deposit purposes. Counting from the next available banking day, the broker must deposit the funds no later than Tuesday. Monday is the first available banking day, and Tuesday represents the deadline under the rule's timeframe for deposit following receipt.
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A supervising broker in Georgia is reviewing office compliance procedures. Which of the following correctly describes the broker's supervisory obligations regarding recordkeeping and advertising?
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Agent Smith places a newspaper advertisement that reads 'Beautiful 3BR/2BA home, great location, call Smith 555-1234.' What GREC rule violation has occurred?