Modesto broker Killian Johnson has just received a money deposit and the related instructions from the buyer, Luis Alverez. Which of the following does NOT describe how Killian should handle this deposit?

a. Give the money to the principal to the transaction. b. Deposit into Killian's account, then figure out his commission, deduct that number to arrive at the final amount (due to the principal) and then write a check to the principal for the monies due to him, within 3 business days. c. Put it into a neutral escrow depository. d. Put it into the broker's trust fund account at a bank or other financial institution

Answer: B. Deposit into Killian's account, then figure out his commission, deduct that number to arrive at the final amount (due to the principal) and then write a check to the principal for the monies due to him, within 3 business days.

Explanation: A broker is a person or organisation who acts in the place of a principal to transact business with a potential customer. a broker is responsible to his or her principal which means he or she or even if its an organisation receives instructions on how to dispose off certain item.

In an agent/broker and a principal relationship, the principal is the owner of the sum of money paid, hence Killian does have to pay into his account and figure his commission by himself, it is to be done by the principal who will eventually pay for the agreed commission to Killian the agent.