A salesperson working with buyers secures an offer on a property. The offer calls for an initial deposit of $1,000 to be held in escrow. The salesperson instructs the buyer to issue a personal check in that amount payable to the salesperson.

While accepting a personal check is problematic, the primary issue is not merely the acceptance of the check, but the fact that it is not made payable to the broker's escrow account. The regulation focuses on the destination of the funds rather than the type of payment method used.

Although the salesperson acts as an agent for the broker, this does not grant them the authority to hold deposits in personal accounts or accept checks made out to themselves. The funds must be directed to the broker's escrow account to ensure compliance with legal standards.

Even if the salesperson writes a check to the broker's escrow account, the initial action of accepting a personal check from the buyer is still prohibited. The process for handling deposits must be established from the outset, emphasizing direct payment to the escrow account without intermediary steps.