Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A real estate sales associate receives an offer on a property listed by their broker. The offer includes an earnest money deposit in the form of a post-dated check. What is the sales associate's immediate obligation regarding this check?
- AHold the check until its date and then deliver it to the broker.
- BReturn the check to the buyer and request a current check.
- CDeposit the check immediately into the broker's escrow account.
- DInform the seller about the post-dated check and, with seller's approval, deliver it to the broker by the next business day.
Show answer & explanationAnswer & explanation
Correct answer: D. Inform the seller about the post-dated check and, with seller's approval, deliver it to the broker by the next business day.
When a sales associate receives a post-dated check as an earnest money deposit, they must immediately inform the seller. If the seller accepts the post-dated check, it must then be delivered to the broker by the end of the next business day following acceptance.
Why the other options are wrong
- A. Holding the check personally is a violation; it must be delivered to the broker promptly.
- B. While a current check is preferred, the sales associate's primary duty is to present the offer and disclose material facts, including the nature of the deposit.
- C. A post-dated check cannot be deposited until its date; immediate deposit would be improper.
Post-dated Earnest Money Check
An earnest money deposit submitted with a future date on the check. Special handling and disclosure to the seller are required.
- Must be disclosed to the seller.
- Requires seller's acceptance.
- Cannot be deposited until its dated date.
- Still must be delivered to the broker promptly after acceptance.
Memory trick: Post-dated check: Disclose, Accept, Deliver, Wait.