Nathan agreed to list his property for sale with Broker Chan. In the listing agreement, Nathan specified Broker Chan is not authorized to accept a deposit towards the purchase price from the buyer. What happens if Broker Chan produces a buyer?
a. He must refuse to accept any deposit.
b. He cannot present the offer as written.
c. If he accepts a deposit, he holds it as an agent of the buyer until the offer is accepted by the seller.
d. If he accepts a deposit and the buyer rescinds the offer prior to acceptance by the seller, Chan is entitled to one-half of the deposit.
Answer: c. If he accepts a deposit, he holds it as an agent of the buyer until the offer is accepted by the seller.
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