Salesperson Karen works under Broker Dave in Newark. A buyer hands Karen a $10,000 earnest money check made payable to Broker Dave's brokerage. What is Karen's correct course of action under New Jersey law?
Correct Answer
C) Karen must promptly deliver the check to Broker Dave, who is then responsible for depositing it into the trust account
Under New Jersey law and NJREC regulations, a salesperson is not authorized to maintain a trust account. Only licensed brokers may hold and deposit client funds. When a salesperson receives funds, they must promptly deliver those funds to their supervising broker, who then bears the responsibility of depositing them into the properly maintained escrow trust account within three business days.
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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
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
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