What is the fate of the deposit once a salesperson receives it?

When a salesperson receives a deposit, the correct course of action is to ensure it is delivered to their employing broker. This requirement is important for several reasons.

Firstly, the funds must be handled according to the brokerage's established policies and procedures, which typically involve placing them in a trust or escrow account. This ensures that the money is safeguarded and is used appropriately in accordance with the transaction. By delivering the deposit to the broker, the salesperson ensures compliance with legal and regulatory obligations regarding the handling of client funds.

Additionally, having the broker manage the deposit helps maintain an organized system for tracking funds and provides a clear record in case of disputes or audits. It protects both the buyer's interests and the integrity of the real estate transaction process.

In contrast, other options involve actions that could lead to legal issues or violations of real estate laws. For example, retaining the deposit personally or depositing it in a personal account would constitute misappropriation of client funds, which is illegal. Returning the deposit to the buyer without proper circumstances, such as a valid termination of the agreement, is also inappropriate if the contract is still in effect. Hence, the safest and most compliant approach is for the salesperson to deliver the deposit to their broker.