An Ohio salesperson discovers that a buyer's $8,000 earnest money deposit was accidentally deposited into the brokerage operating account two hours ago instead of the trust account. Under ORC Chapter 4735, what is the correct course of action?
Correct Answer
B) Transfer the funds to the trust account immediately and document the error for the broker's review
Under ORC §4735.18(A)(12), depositing client funds into an operating account — even accidentally — constitutes commingling, which is a prohibited act regardless of intent. The error must be corrected immediately upon discovery, not deferred to end-of-day or the next business day. Because the salesperson does not control the trust account independently, the broker must be notified so the transfer can be authorized and the incident properly documented in the trust account records.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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.
More Oh License Law Orc 4735 Questions
Under ORC Chapter 4735, what is the minimum period an Ohio broker must retain trust account records after a transaction is completed or terminated?
Under ORC Chapter 4735, what happens to an Ohio real estate license if the licensee does not renew it by the expiration date?
Under ORC §4735.141, how are Ohio's 30 continuing education hours structured for active salespersons and brokers?
Under ORC Chapter 4735, which entity approves continuing education providers and courses for Ohio real estate licensees?
Under ORC Chapter 4735, which of the following best describes the required content of post-license education for newly licensed Ohio salespersons during their initial licensing period?
- → Under ORC Chapter 4735, continuing education for Ohio real estate licensees must be completed how often?
- → Under ORC §4735.14, what is the continuing education obligation for an Ohio salesperson who reactivates a license that has been on inactive status?
- → Under ORC Chapter 4735, which entity has the authority to establish renewal fees for Ohio real estate licenses, and how may those fees be changed?
- → Under ORC §4735.141, which outcome does Ohio's continuing education requirement for real estate licensees primarily serve?
- → Under ORC Chapter 4735, which of the following correctly describes a requirement that applies to continuing education courses completed by Ohio real estate salespersons?
- → Under ORC Chapter 4735, Ohio real estate licenses are renewed on what cycle?
- → Under ORC Chapter 4735, how many hours of continuing education must an Ohio salesperson complete during each three-year license period?
- → Under ORC Chapter 4735, which accommodation is available to an Ohio licensee who is on active duty with the U.S. military regarding license renewal and continuing education?
- → Under ORC Chapter 4735, what is the total number of hours of pre-license education and post-license education that a new Ohio salesperson must complete during the first licensing period?
- → Under ORC Chapter 4735, what is the primary purpose of the Ohio Division of Real Estate auditing a licensee's continuing education records?