Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A Florida real estate broker receives an earnest money deposit in the form of a post-dated check. What is the broker's proper course of action regarding this check?
- AHold the check and deposit it on the date indicated on the check, without notifying the seller.
- BReturn the check to the buyer and request a current check or other form of payment.
- CDeposit the check immediately into the escrow account and notify all parties.
- DHold the check and deposit it on the date indicated on the check, after obtaining seller's approval.
Show answer & explanationAnswer & explanation
Correct answer: D. Hold the check and deposit it on the date indicated on the check, after obtaining seller's approval.
A post-dated check can be accepted as an earnest money deposit, but the broker must secure the seller's approval and then hold the check in a safe place until its date, at which point it should be promptly deposited.
Why the other options are wrong
- A. Seller's approval is a crucial step when accepting a post-dated check to ensure they are aware of the terms.
- B. While possible, it's not the *only* proper course of action; post-dated checks are permissible with proper handling.
- C. Depositing a post-dated check immediately would result in it bouncing, which is improper.
Post-Dated Earnest Money Check
A post-dated check received as an earnest money deposit requires specific handling by a real estate broker, including obtaining seller approval and holding it until the date on the check.
- Permissible if seller approves.
- Broker must hold the check in a secure place.
- Deposit only on the date written on the check.
Memory trick: POST-DATED CHECK? Get CONSENT, then WAIT and DEPOSIT.