A real estate brokerage receives a court order to freeze trust funds related to a specific transaction. The brokerage has already received instructions from their client to release these funds for the property closing. What should the brokerage do?
Correct Answer
B) Comply with the court order and freeze the funds until further legal direction
Court orders take precedence over client instructions when it comes to trust fund management. The brokerage must comply with the legal order to freeze funds and seek legal counsel for guidance on next steps while maintaining proper trust account procedures.
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A real estate brokerage receives a $50,000 deposit on a Friday evening. According to trust account regulations, by when must this deposit be placed in the trust account?
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