A buyer has submitted an offer with an earnest money deposit of $15,000 for a property in Edmonton. The buyer's real estate associate receives the deposit cheque and must now ensure it is handled correctly. According to RECA Rules, what is the correct procedure for handling this deposit?

Question: A buyer has submitted an offer with an earnest money deposit of $15,000 for a property in Edmonton. The buyer's real estate associate receives the deposit cheque and must now ensure it is handled correctly. According to RECA Rules, what is the correct procedure for handling this deposit?

Answer options:

• The associate must immediately deposit the cheque into their personal bank account for safekeeping.
• The associate should hold the cheque in their office safe until all conditions are waived, then deposit it into the brokerage trust account. ✅ The associate must deliver the deposit to their brokerage, who will deposit it into their real estate trust account within three business days of acceptance of the offer.
• The associate can give the cheque directly to the seller, who can then deposit it into their chosen bank account.

Correct answer: The associate must deliver the deposit to their brokerage, who will deposit it into their real estate trust account within three business days of acceptance of the offer.

Explanation: RECA Rules Section 56(1) and 56(2) stipulate that deposits must be paid to the brokerage and subsequently deposited into the brokerage's real estate trust account within three business days of acceptance of the offer in writing.