California Real Estate Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

A broker must follow the instructions of the buyer with respect to the deposit if there is no listing agreement, as the buyer is the party who submitted the deposit. The seller's instructions may be disregarded in this case since there is no contractual agreement between the seller and broker. While the broker may have their own policies and guidelines for handling deposits, it is important to prioritize the instructions and needs of the buyer in this situation. Lastly, returning the deposit is not a valid option as the deposit is intended to be held until closing or otherwise agreed upon by both the buyer and seller.