Question 66

Salespersons must give a written receipt and deliver funds to their broker.

When a salesperson receives cash to be held in trust, they must give a written receipt signed by themselves to the prospective purchaser and immediately deliver the funds to their broker. This process ensures proper handling and accountability of the funds.

A) deposit the money within twenty-four hours in an interest bearing account

This option is incorrect because while depositing funds in a timely manner is important, the requirement is not specifically to place the money in an interest-bearing account. Instead, the salesperson must deliver the funds to their broker as outlined in the correct answer.

B) give a written receipt signed by the salesperson to the prospective purchaser and immediately deliver the funds to the salesperson's broker

This is the correct choice as it accurately describes the required action for a salesperson when handling cash received in trust. Providing a written receipt and delivering the funds to the broker ensures compliance with legal and ethical responsibilities.

C) notify the customers that cash is unacceptable and request that payment be made by certified check as required by the license law

This option is incorrect because it implies that cash cannot be accepted, which is not a requirement in this context. Instead, the salesperson must properly handle the cash received and provide a receipt, rather than refuse to accept it.

D) immediately deposit the funds in the salesperson's account and write a check to the broker's escrow account

This choice is incorrect as it misrepresents the process. Funds must not be deposited into the salesperson's personal account; instead, they must be delivered directly to the broker. This ensures that the funds are managed according to regulations.

Conclusion

Option B is definitively correct as it outlines the specific legal requirements for salespersons handling trust funds. All other options fail to meet the necessary conditions for proper fund management, either suggesting incorrect procedures or misinterpretations of the law. Compliance with these requirements is crucial for maintaining professional integrity and accountability in real estate transactions.