Where must a salesperson place a down payment deposit collected from a potential buyer?

The correct choice indicates that a salesperson must place a down payment deposit collected from a potential buyer in the hands of his broker. This practice is grounded in the responsibilities and legal obligations of real estate agents and brokers. When a salesperson collects funds from a buyer, those funds need to be managed in accordance with state real estate laws and regulations.

The broker acts as an intermediary, ensuring that the deposit is held safely until the transaction is finalized or until the terms of the agreement specify otherwise. This structure helps maintain a clear record of such transactions and protects both buyers and sellers from potential disputes about the handling of funds.

Ensuring that the deposit is entrusted to a broker also provides a layer of oversight and accountability, since brokers are typically licensed and subject to regulatory scrutiny, which helps build trust in the real estate transaction process. By placing the deposit with the broker, it is secure and handled in accordance with industry standards, which ultimately protects the interests of all parties involved.