A buyer gives Salesperson Tom a $5,000 earnest money check made payable to Tom's employing broker's escrow account. Tom's broker is out of town for a week. What is the most appropriate action for Tom to take under Massachusetts regulations?
Correct Answer
B) Deposit the check into the broker's trust account on the next business day using the broker's established deposit procedures
Under Massachusetts regulations (254 CMR 3.00), earnest money must be deposited into the broker's trust account as soon as practicable — typically the next business day. A salesperson should follow the broker's established deposit procedures to ensure timely deposit. The broker's absence does not excuse a delay in depositing client funds. Most brokerages have procedures that allow deposits to be made even when the broker is not physically present.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
More Practice Of Real Estate Questions
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