New Jersey Real Estate Practice Exam Practice Question
A salesperson working with buyers secures an offer on a property. The offer calls for an initial deposit of $1,000 to be held in escrow. The salesperson instructs the buyer to issue a personal check in that amount payable to the salesperson. This action is
Correct Answer: C
Rationale: In this scenario, checks for deposits intended for escrow must be made payable directly to the broker's escrow account to ensure proper handling and compliance with regulations. Option A is incorrect because while accepting a personal check is not inherently prohibited, it is the payee that raises the issue. Option B is misleading; although the salesperson acts as an agent, they cannot accept deposits directly. Option D, while seemingly practical, does not align with the requirement for the deposit to be made directly to the broker's escrow account, thus failing to meet proper protocol.
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