Question 36

The licensee must provide the buyer with a written receipt signed by the licensee.

When a buyer places a cash deposit on a property, it is essential for the licensee to provide a written receipt that is signed by them. This receipt serves as proof of the transaction and protects both the buyer and the licensee.

A) list of options as to how the deposit may be paid

While it is important for the buyer to understand the payment methods available, providing a list of options does not fulfill the legal requirement for documentation of the cash deposit. Therefore, this option is incorrect.

B) specific bank office and the account number where the money will be deposited

This option pertains to the logistics of where the deposit is going but does not address the necessity of providing a written receipt to the buyer. Thus, it is not the correct option.

C) 1099 form confirming the transaction

A 1099 form is typically used for reporting income to the IRS and is not relevant to the immediate need for a receipt for a cash deposit. Therefore, this option is incorrect and does not meet the requirements for the situation described.

D) written receipt signed by the licensee

Providing a written receipt signed by the licensee is the correct answer as it serves as legal documentation of the cash deposit made by the buyer. This receipt is crucial for ensuring transparency and accountability in the transaction.

Conclusion

The necessity of a written receipt signed by the licensee is critical for documenting the cash deposit transaction, ensuring that both parties have a record of the agreement. Other options fail to provide the necessary proof or relevant information related to the cash deposit, making them inadequate in fulfilling the requirements of the situation.