A broker receives earnest money deposits from two competing offers on the same property. Under GREC trust account rules, what is the broker's obligation regarding these funds?
Correct Answer
D) Deposit both checks into the trust account and maintain detailed records identifying each deposit
Under GREC Rule 520-1-.09, earnest money received by a broker must be deposited into the broker's trust account within the timeframe prescribed by the rule. When multiple deposits are received, the broker must maintain detailed records that clearly identify each deposit, including the parties involved and the property, to ensure proper accounting and avoid commingling issues. Both deposits must be handled according to the trust account rules regardless of which offer is ultimately accepted.
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