Upon receiving a deposit on a transaction, what must a salesperson do?

When a salesperson receives a deposit on a transaction, it is essential for them to follow proper protocol to ensure compliance with real estate regulations and ethical practices. The correct action is to deliver the deposit to their employing broker. This practice is in line with the licensing laws and regulations, which dictate that any funds received in connection with a real estate transaction must be entrusted to the broker. The broker is then responsible for managing those funds according to the legal requirements, which typically involve placing the deposit in a trust or escrow account to safeguard the buyer's money until the transaction is completed.

By delivering the deposit to their broker, the salesperson helps maintain a clear chain of accountability and protects the interests of all parties involved in the transaction. It also ensures that the funds are handled in a manner that is both compliant with state laws and professional standards.