What is required once deposit funds are made during a real estate transaction?

When deposit funds are made during a real estate transaction, it is essential to issue a receipt. This receipt serves as formal documentation acknowledging the receipt of the deposit by the broker or real estate agency involved in the transaction. It is an important part of maintaining transparency and accountability in the real estate process, as it provides proof to the buyer that their funds have been received.

Issuing a receipt is crucial for both the buyer and seller, as it protects the interests of both parties. The buyer can refer to the receipt to confirm that their deposit has been processed, while the seller or their representative has a record of the transaction, which can help in preventing disputes later on.

Other options, while important in various contexts of real estate transactions, are not strict requirements at the moment the deposit funds are made. For example, a signed contract is typically needed before a deposit is made, and approval from the buyer's bank might be necessary for financing but is not relevant to the acknowledgment of deposit funds. Meanwhile, a disclosure statement pertains to providing necessary information about the property, but again, this is not a requirement directly related to the deposit process.