A buyer gives Massachusetts Broker Kim a personal check for $8,000 as an earnest money deposit. The buyer asks Kim to hold the check uncashed for two weeks until the buyer can transfer funds from another account. The seller has already signed the offer. What should Kim do?
Correct Answer
B) Deposit the check into the trust account immediately, regardless of the buyer's request
Under Massachusetts Board regulations (254 CMR 3.00), earnest money deposits must be deposited into the broker's trust account as soon as practicable — typically the next business day. The broker cannot accommodate a buyer's request to hold a check uncashed, as this delays proper handling of client funds and may expose all parties to risk. If the buyer does not have sufficient funds, that is a matter to be addressed with the parties and their attorneys, not by holding the check.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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.
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