Troy, an Ohio salesperson, accidentally deposits an earnest money check into the brokerage's general operating account instead of the trust account. Troy discovers the error the next day. Under Ohio law, what should Troy do?
Correct Answer
C) Immediately notify the supervising broker and transfer the funds to the trust account
Depositing earnest money into the operating account is commingling, a violation of Ohio law. Troy must immediately notify the supervising broker and transfer the funds to the trust account. Prompt correction is essential to comply with ORC §4735.24.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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