Mr. Chen, a real estate broker, facilitated the sale of a commercial property in Montréal. He received a deposit cheque from the buyer for $25,000. Which of the following is the correct procedure Mr. Chen must follow concerning this deposit?

Question: Mr. Chen, a real estate broker, facilitated the sale of a commercial property in Montréal. He received a deposit cheque from the buyer for $25,000. Which of the following is the correct procedure Mr. Chen must follow concerning this deposit?

Answer options:

• Deposit the cheque into his firm's general operating account within 24 hours. ✅ Deposit the cheque into the firm's trust account as soon as possible, but no later than three banking days.
• Hold the cheque in a secure location in his office until the conditions of the promise to purchase are met.
• Endorse the cheque over to the seller's lawyer for safekeeping until the closing date.

Correct answer: Deposit the cheque into the firm's trust account as soon as possible, but no later than three banking days.

Explanation: Article 36 of the Real Estate Brokerage Act and Article 34 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising provide that sums received by a broker for others must be deposited in a trust account as soon as possible, and no later than three banking days following their receipt.