New Jersey Real Estate Practice Exam Free 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 out to the broker's escrow account, ensuring proper handling and accountability of funds. Option A is incorrect; while personal checks are involved, the issue is not merely about accepting a personal check but the payee's designation. Option B is misleading; although the salesperson acts as an agent, they still must adhere to escrow regulations, which require checks to be payable to the broker's account. Option D is also incorrect, as transferring the check does not comply with the initial requirement of direct payment to the escrow account.
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