New Jersey Real Estate 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 lease a personal check in that amount payable to the salesperson. This action is
Correct Answer: C
Rationale: Option C is accurate as checks for deposits must be made payable to the broker's escrow account to ensure proper handling and protection of funds. This safeguards the buyer's money and maintains compliance with real estate regulations.
Option A is incorrect; accepting a personal check is not inherently prohibited, but the check must be directed appropriately.
Option B misinterprets the role of the salesperson; while they act as an agent, they cannot bypass the requirement for checks to be made out to the broker's escrow account.
Option D suggests that writing a check to the broker's escrow account after receiving a personal check is acceptable, but it does not align with the immediate requirement for proper deposit handling.
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