Florida Broker Practice Exam

What should a sales associate do if an escrow check is made out to them?

1. Deposit it immediately in their personal account

2. Ask the prospective buyer to write a new check

3. Cash the check at their bank

4. Hold it until further instructions

The correct answer is: Ask the prospective buyer to write a new check

When a sales associate receives an escrow check made out to them personally, the proper course of action is to ask the prospective buyer to write a new check made out to the appropriate escrow account or brokerage. This ensures that the funds are handled in compliance with legal and ethical standards. In real estate transactions, escrow checks are meant to secure a commitment from the buyer and should be deposited into an escrow account managed by the brokerage. This protects both parties in the transaction and ensures that funds are handled in accordance with the regulations set forth by the Florida Real Estate Commission. Writing a new check to the correct recipient is essential to maintaining the integrity of the transaction and safeguarding the interests of all parties involved. By directing the buyer to issue a new check, the sales associate prevents potential legal complications or violations of industry standards related to the misuse of trust funds. This practice reinforces the importance of professionalism and adherence to regulatory requirements within the real estate profession.