Final answer:
When a real estate sales associate receives an earnest money deposit, they must deposit the funds in an escrow account to ensure their secure handling and disbursement.
Step-by-step explanation:
When a real estate sales associate receives an earnest money deposit, they have specific obligations regarding the handling of those funds. In this case, the correct action for the sales associate to take is to deposit the funds in an escrow account.
An escrow account is a neutral third-party account that ensures the safekeeping of the funds until the completion of a specified event, such as the purchase of a property. This helps protect both the buyer and seller involved in the transaction.
By depositing the funds in an escrow account, it ensures that the money is securely held and will be disbursed according to the agreed-upon terms once the purchase process reaches its conclusion.