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S_A_V
2 months ago
5

Modesto broker Killian Johnson has just received a money deposit and the related instructions from the buyer, Luis Alverez. Whic

h of the following does NOT describe how Killian should handle this deposit?A. Give the money to the principal to the transaction.B. Deposit into Killian’s account, then figure out his commission, deduct that number to arrive at the final amount (due to the principal) and then write a check to the principal for the monies due to him, within 3 business days.C. Put it into a neutral escrow depository.D. Put it into the broker’s trust fund account at a bank or other financial institution.
Business
1 answer:
Free_Kalibri [3.7K]2 months ago
5 0

Answer: B) Deposit the money into Killian’s account, calculate his commission afterwards, then subtract that amount to determine the final sum owed to the principal, followed by issuing a check to the principal within 3 business days.

Explanation:

Killian has options for depositing the funds into the principal's account, an escrow account, or even into the broker's trust fund, depending on what is agreed upon with the seller; however, he cannot retain the funds for personal use. Killian is only entitled to earn his commission after the sale closes.

Advance commissions are not permissible, since various circumstances could prevent the successful execution of the deal, such as the home could be destroyed, the banking system collapsing, or the demise of either buyer or seller, among other unlikely events.

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