Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresEasy
A Florida real estate sales associate receives an earnest money deposit in the form of a check on Friday morning. The sales associate is employed by a broker who operates a single office. By when must the sales associate deliver the check to their employing broker?
- AWithin 24 hours of receipt.
- BBy the end of the next business day (Monday).
- CBy the end of the third business day (Wednesday).
- DImmediately upon receipt.
Show answer & explanationAnswer & explanation
Correct answer: D. Immediately upon receipt.
Florida Statute requires a sales associate to deliver earnest money deposits to their employing broker immediately. The broker then has a separate timeline for depositing the funds into an escrow account.
Why the other options are wrong
- A. While 'immediately' implies urgency, 'within 24 hours' is still a defined period, whereas 'immediately' means without delay.
- B. This timeframe applies to the broker's deposit into an escrow account, not the sales associate's delivery to the broker.
- C. This timeframe is incorrect for both the sales associate's delivery and the broker's deposit.
Sales Associate Earnest Money Delivery
Florida law requires a real estate sales associate to deliver any earnest money deposit received to their employing broker immediately, without delay.
- Applies to all forms of earnest money (checks, cash, etc.).
- This is a separate requirement from the broker's deposit into an escrow account.
- Failure to comply can lead to disciplinary action.
Memory trick: Sales Associate's job is to 'Hand It Over Immediately' to the Broker.