Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A Florida real estate sales associate receives an offer on a listed property. The offer includes a personal check for the earnest money deposit. The sales associate knows the seller is out of town and won't be back for several days. What is the sales associate's immediate responsibility regarding this earnest money deposit?
- AMail the check directly to the title company or attorney designated in the contract within three business days.
- BHand the check to the sales associate's employing broker by the end of the next business day.
- CHold onto the check until the seller returns and can personally instruct on its handling.
- DDeposit the check into their personal checking account for safekeeping until the broker can receive it.
Show answer & explanationAnswer & explanation
Correct answer: B. Hand the check to the sales associate's employing broker by the end of the next business day.
Sales associates must deliver earnest money deposits to their employing broker by the end of the next business day following receipt. The broker then has their own timeframe for deposit.
Why the other options are wrong
- A. Sales associates do not typically mail deposits directly; they must give them to their broker first.
- C. Holding the check indefinitely is a violation of the timely delivery of funds requirement.
- D. Depositing client funds into a personal account is illegal commingling and conversion.
Sales Associate Deposit Deadline (FL)
In Florida, a real estate sales associate must deliver any earnest money deposit to their employing broker by the end of the next business day after receiving it.
- Next business day deadline.
- Deliver to employing broker.
- Broker then has 3 business days to deposit.
- Applies to all forms of deposits (cash, check, etc.).
Memory trick: Got the cash? Give it to the boss, fast, or you're lost!