Practice Quiz

Illinois Real Estate Exam

Category - Real Estate

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A salesman receives a deposit together with a written offer to purchase and delivers them to the employing broker who presents it to the seller. The seller signs and accepts the offer. Without the consent of the salesman and through no fault of his own, the buyer and seller instruct the salesman’s employing broker to return the deposit. Which of the following is true?
  1. The salesman’s employing broker may retain one-half of the deposit and must give one-half to the seller
  2. The broker may sue the seller but must return the deposit
  3. The broker may retain one-half of the deposit and must return only one-half to the buyer
  4. The broker may retain the deposit to compensate him for his efforts
Explanation
Answer: B. Once the offer has been accepted, the deposit money belongs to the seller. If the seller instructs the broker to return the deposit, the broker must do so. The broker has probably earned a commission and may sue the seller for the amount but may not hold the deposit money.
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