Broker Johnson receives a $5,000 earnest money check from buyer Smith for a property purchase. The closing is scheduled for 30 days later. According to GREC rules, what must Broker Johnson do with this earnest money?
Correct Answer
C) Deposit it in a trust account by the end of the next business day
GREC rules require earnest money to be deposited in a trust account by the end of the next business day after receipt. Option A is incorrect because commingling client funds with personal funds is prohibited. Option B is incorrect because checks must be deposited promptly, not held. Option D is incorrect because the receiving broker must handle the deposit according to trust account rules.
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- → A newly licensed Georgia salesperson asks why exam preparation materials cover both recordkeeping and advertising rules in the same study section. What is the best explanation?
- → In a formal GREC disciplinary hearing regarding alleged license law violations by a licensee, what standard of proof must be met to support disciplinary action?
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- → According to GREC regulations, what is the minimum period a Georgia broker must retain records of trust account transactions?
- → Real estate firm ABC Realty wants to advertise on social media. According to GREC advertising rules, what information must be included in their Facebook advertisement?
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- → Broker Taylor's trust account is overdrawn by $500 due to a bank error. The bank corrects the error the next day. Must Taylor report this to GREC?
- → 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?
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Previous Question
Under GREC rules, which of the following best describes a supervising broker's obligation regarding transaction documentation?
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A licensed real estate salesperson places the following advertisement in a local newspaper: 'Beautiful 3BR/2BA home, great location, $250,000. Call Sarah at 404-555-1234.' No other identifying information is included. Which GREC advertising requirement does this advertisement violate?