Real Estate Agent Question ??? Can anyone help?

Question

I am stuck on this question for my assignment, can anyone help me out ???

Here it is:-

You are holding the deposit for an exchanged property in your agency trust account. It is about to settle and your bookkeeper informs you that there has been an overrun in promotions against what was originally agreed to in the agency agreement.
On further examination you see that the reason why there has been a cost overrun was due to a placement of an advertisement in an extra publication to what was originally agreed. This was done at the request of the vendor. Explain what you would do.

Answer 1

The deposit was earnest money for the exchanged property and should have never been touched. Obviously, someone didn't budget correctly and now has dipped into this money. I would find the money and replace it as the person who originally gave you the deposit for safe keeping should be allowed to receive his deposit back if he should ask for it.

Answer 2

You cannot use the deposit in the trust account. All you can do is send your customer a bill or, better still, ask them to come in and discuss this issue with them. The deposit money, minus your agreed commission, is to be paid to the customer.

Answer 3

Send the vendor a bill for the ad Before you settle the escrow.