Employing Broker Kevin in Colorado Springs is closing his brokerage. He has $18,000 remaining in his trust account from three pending transactions that have not yet closed. He plans to retire and will not transfer his license to another brokerage. Under Colorado CREC rules, what must Kevin do with the trust account funds?
Correct Answer
A) Retain the funds in the trust account until each transaction is properly resolved, closed, or the funds are legally disbursed per written authorization or court order
Under CREC rules and C.R.S. § 12-10-217, trust funds must be held until each transaction is properly resolved. Kevin cannot simply close his brokerage and abandon the trust account. The funds must remain in the trust account until each transaction closes, is cancelled with a written mutual release, or is resolved by court order. Kevin must make arrangements to ensure proper handling of each pending transaction before dissolving his brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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