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A South Dakota broker must maintain a trust account for:

Correct Answer

B) Earnest money and other client funds

A South Dakota broker is required to maintain a trust (escrow) account in a South Dakota financial institution for holding earnest money, security deposits, and other client funds. These funds must be kept separate from the broker's personal or business operating accounts.

Answer Options
A
Personal savings
B
Earnest money and other client funds
C
Commission payments to agents
D
Operating expenses of the brokerage

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Related Topics & Key Terms

Related Topics:

comminglingconversionbroker-liabilitySDREC-audits

Key Terms:

trust accountclient fundsseparateearnest moneyno commingling
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