A brokerage received an offer on a residential property that was conditional on financing. The offer included a deposit of $10,000, which was held in the brokerage's trust account. The financing condition was not met, and the deal collapsed. Both buyer and seller are now disputing the release of the deposit. What is the brokerage's immediate responsibility regarding the deposit?

Question: A brokerage received an offer on a residential property that was conditional on financing. The offer included a deposit of $10,000, which was held in the brokerage's trust account. The financing condition was not met, and the deal collapsed. Both buyer and seller are now disputing the release of the deposit. What is the brokerage's immediate responsibility regarding the deposit?

Answer options:

• The brokerage must promptly return the deposit to the buyer. ✅ The brokerage must seek a written agreement from both parties for the release of the deposit.
• The brokerage must interplead the funds into court.
• The brokerage can release the funds to the seller as compensation for the collapsed deal.

Correct answer: The brokerage must seek a written agreement from both parties for the release of the deposit.

Explanation: RECA Rules Section 47(1) states that a brokerage must not disburse trust money until all parties to the transaction have given their written consent to its disbursement or a court order directs its disbursement. In case of a dispute, written agreement or a court order is paramount.