A broker receives a deposit from a buyer late Friday night, with instructions to hold the check uncashed pending the seller's acceptance of the offer. The broker decides to put it in a safe in the office for security purposes until the offer can be submitted to the seller. In doing so the broker is:

Question

Quizplus · Accepted Answer

The broker has not committed any wrongdoing by holding the check in a safe for security purposes until the offer can be submitted to the seller. As long as the broker does not cash the check, there is no issue of conversion or commingling. The broker is not required to place the deposit into a trust fund until the offer has been accepted by the seller.

A Broker Receives a Deposit from a Buyer Late Friday