A Rhode Island principal broker reviews escrow or trustee account records are maintained for a transaction. Which answer follows Rhode Island law?
Correct Answer
C) The records must be kept for three years and show ownership, deposits, withdrawals, payees, and other required information
R.I. Gen. Laws § 5-20.5-26 requires escrow or trustee account records for three years showing to whom money belongs, date deposited, date withdrawn, payee, and other required information. Source basis: Rhode Island Department of State official regulation 230-RICR-30-20-2 §§ 2.18-2.19 and R.I. Gen. Laws § 5-20.5-26; checked 2026-04-30.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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