Question 66

A salesperson MUST give a written receipt signed by the salesperson to the prospective purchaser and immediately deliver the funds to the salesperson's broker.

When a salesperson receives cash to be held in trust, it is required that they provide a written receipt to the purchaser and promptly transfer the funds to their broker. This procedure ensures accountability and proper handling of the funds.

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

This option is incorrect because the requirement is not to deposit cash in an interest-bearing account. Instead, the salesperson must deliver the funds to the broker immediately after providing a receipt, rather than waiting for a specific time frame to deposit.

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

This option is correct as it accurately reflects the legal obligation of the salesperson to issue a receipt and transfer the cash to the broker without delay. This practice protects both the salesperson and the client by ensuring that the funds are handled properly.

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 suggests that cash payments are generally unacceptable, which is not the case. The law does not prohibit cash payments; rather, it outlines the necessary steps for handling cash once received.

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

This option is incorrect because it implies that the salesperson can first deposit the cash into their own account before transferring it to the broker. The correct procedure is to deliver the cash directly to the broker after issuing a receipt, not to deposit it in their own account.

Conclusion

Option B is the only choice that correctly outlines the procedure for handling cash received by a salesperson. It emphasizes the importance of accountability through the issuance of a receipt and the immediate delivery of funds to the broker. All other options fail to comply with the legal requirements for handling trust funds in a real estate transaction.