An affiliate broker who operates as an independent contractor for a broker is seldom in the office. Earnest money deposits received by this affiliate broker

This option is incorrect because affiliate brokers are typically not authorized to maintain their own escrow accounts. Earnest money must be deposited into an escrow account managed by the principal broker to ensure proper oversight and adherence to regulatory requirements.

This choice is misleading as earnest money should not be held by the affiliate broker at all. The funds must be transmitted to the principal broker immediately to avoid any potential issues regarding the handling of client funds and to comply with real estate laws.

Returning earnest money to the buyer is not a standard practice and would create unnecessary complications. The proper protocol is to ensure that the funds are given directly to the principal broker for security and management, rather than involving the buyer in the process unnecessarily.