Final answer:
The broker's authority to accept an earnest money deposit comes from the offer to purchase, which outlines the terms for holding and refunding the deposit.
Step-by-step explanation:
The broker gets the authority to accept an earnest money deposit from the offer to purchase, which is also commonly referred to as the purchase agreement or sales agreement.
When a buyer makes an offer on a property, they include an earnest money deposit to demonstrate their serious intent to complete the transaction.
The offer to purchase typically includes terms that dictate how the earnest money is to be held and under what circumstances it may be refunded or applied to the purchase price.
It is essential that this agreement defines the broker's role regarding the earnest money to ensure that there is clear authorization for handling such funds.