What must a real estate agent do with a deposit upon receipt?

The correct approach for a real estate agent upon receiving a deposit is to place it into a trust account after the offer is accepted. A trust account is specifically designed to hold clients' funds safely and separately from the agent's personal or business funds. This practice ensures that the deposit is managed properly and is secured until the transaction is finalized.

Once the offer has been accepted, the agent must handle the deposit according to local regulations and the terms of the contract, which typically require that funds be deposited into a trust account promptly. This helps maintain transparency and protects both the buyer's and seller's interests throughout the real estate transaction process.

Holding the deposit until the offer is accepted is not sufficient, as it does not comply with regulatory expectations regarding the handling of monetary deposits. Returning the deposit to the buyer would not fulfill the usual process when negotiating a property transaction, as the deposit serves to secure the buyer's intent. Additionally, placing the deposit into the agent's personal account is not permissible and violates trust account regulations.