Michigan Real Estate Salesperson Practice Exam

When a salesperson receives a deposit on a transaction, the appropriate action is to deliver it to his or her employing broker. This requirement is rooted in the legal and ethical guidelines that govern real estate practice. The employing broker is responsible for managing client funds, ensuring compliance with fiduciary duties, and maintaining accurate records.

By delivering the deposit to the broker, the salesperson ensures that the funds are handled in accordance with state laws and regulations, which typically mandate that earnest money be held in a trust or escrow account. This protects the interests of all parties involved in the transaction and prevents the salesperson from misusing or mishandling the funds.

Other options, such as keeping the deposit for safekeeping or depositing it in a personal account, violate these standards. Additionally, delivering it to the client's attorney is not a standard procedure, as the broker is the appropriate party responsible for the handling of such deposits in most scenarios.