Florida Broker Practice Exam

When dealing with postdated checks, how should the check be handled until the date is current?

1. Hold it for up to 30 days

2. Deposit it in the escrow account

3. Hold it in a safe place until the date becomes current

4. Return it to the buyer for a new check

The correct answer is: Hold it in a safe place until the date becomes current

When dealing with postdated checks, the appropriate action is to hold the check in a safe place until the date on the check becomes current. The reason for this approach is to ensure that the check is not deposited before the date indicated, which could potentially create issues with insufficient funds or timing discrepancies. Withholding the check until it is valid helps to maintain proper accounting practices and ensures that all transactions are conducted transparently and within legal guidelines. Having the check in a safe place also minimizes risks such as loss or unauthorized access to the document prior to its intended use. This strategy protects both the payer and the recipient from complications that might arise if a check is presented prematurely.