Question

A salesperson receives cash instead of a check as earnest money deposit. He should?

1) Put it into a trust account
2) Keep it for the commission
3) Give it to the seller
4) Give it to the broker

Answer 1

When a salesperson receives cash as an earnest money deposit, they should put it into a trust account.

Step-by-step explanation:

When a salesperson receives cash instead of a check as an earnest money deposit, they should put it into a trust account. A trust account is a separate bank account that is used to hold money received from clients and other individuals. By placing the cash in a trust account, the salesperson ensures that it is securely held until the transaction is completed and the funds can be distributed according to the agreed-upon terms.