New Hampshire salesperson Olivia works for Broker David. A buyer client, Mr. Park, gives Olivia a $10,000 earnest money deposit check made payable to 'David's Realty Trust Account.' Broker David instructs Olivia to hold the check in her desk drawer for two weeks because the seller has not yet signed the purchase agreement. Under RSA Chapter 331-A and NHREC trust account rules, which of the following best describes the correct handling of Mr. Park's deposit?
Correct Answer
B) The deposit must be deposited into the broker's escrow account within the time frame required by NHREC rules upon receipt, regardless of whether the purchase agreement has been signed by the seller.
Under RSA 331-A and NHREC trust account rules, earnest money deposits must be deposited into the broker's designated escrow or trust account within the time frame specified by Commission rules upon receipt. The fact that the seller has not yet signed the purchase agreement does not excuse or delay the deposit obligation. Holding the check in a desk drawer — even if uncashed — may violate the prompt deposit requirement and creates risk of loss, theft, or damage. The proper procedure is immediate deposit into the trust account.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
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