An Ohio broker discovers that a salesperson who left the brokerage two months ago never deposited a client's earnest money check and still has it in his personal possession. Under ORC Chapter 4735, what is the broker's primary obligation?

Correct Answer

C) Retrieve the funds, deposit them into the trust account, notify all affected parties, document the incident, and report to the Division as warranted

Under ORC §4735.18, a broker has a non-delegable duty to safeguard client funds and ensure all earnest money is properly deposited and accounted for. When a broker discovers that client funds were never deposited — regardless of whether the responsible salesperson is still affiliated — the broker must act immediately to secure those funds, deposit them into the trust account, notify all affected parties (buyer, seller, and any cooperating parties), create a written record of the incident, and report to the Ohio Division of Real Estate if the facts suggest a violation of ORC §4735.18. Inaction or delay exposes the broker to disciplinary action, including license suspension or revocation.