Under TREC rules, Broker Wilson discovers that a sales agent in his office has been collecting earnest money from clients and holding the checks in the agent's desk drawer for several days before delivering them to Wilson for deposit. Under TREC rules, is the sales agent's conduct a violation?
Correct Answer
A) Yes, the sales agent must deliver earnest money to the sponsoring broker promptly; holding checks in a desk drawer for several days is a violation
Under TREC rules, sales agents must deliver earnest money to the sponsoring broker promptly. Holding checks in a desk drawer for several days is not prompt delivery and constitutes a violation. The agent has a duty to deliver trust funds to the broker without unreasonable delay.
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