Which action is required when a real estate agent receives a deposit from a buyer?

When a real estate agent receives a deposit from a buyer, the correct action is to deposit the funds in an escrow account. An escrow account is a separate account specifically designed to hold funds on behalf of parties involved in a transaction, such as a buyer and seller. This method ensures that the funds are secure and are not commingled with the agent's personal or business funds, which is a critical requirement for maintaining trust and legal compliance in real estate transactions.

Using an escrow account also provides protection for both the buyer and the seller. It ensures that the deposit is only released when certain conditions are met, such as the completion of a sale or the fulfillment of contractual obligations. This practice helps foster confidence in the process and safeguards the interests of all parties involved, as it provides a neutral ground for handling funds during the transaction period.