New Jersey Real Estate License 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.
Correct Answer: C
Rationale: Option C is accurate because deposits for escrow must be made directly to the broker's escrow account, ensuring proper handling and accountability of funds. This protects both the buyer and seller in the transaction.
Option A is incorrect; while a salesperson can accept personal checks, they cannot do so for escrow deposits unless they are made payable to the broker.
Option B is misleading; although the salesperson acts as an agent for the broker, this does not grant them the authority to hold deposits personally.
Option D is also wrong; the initial deposit must be made directly to the broker's account, not transferred later, to maintain compliance with regulations.
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