Broker Diana is closing her real estate office and transferring her active listings to another brokerage. She currently holds $22,000 in her trust account representing earnest money deposits from three different buyers. Which of the following actions is most consistent with Connecticut law regarding these trust funds?
Correct Answer
C) Diana must maintain and account for the trust funds until proper disbursement is authorized, and may only transfer funds with the written consent of all parties or a court order
Under Connecticut law (CGS § 20-324e) and CREC regulations, a broker remains responsible for trust funds until they are properly disbursed. Funds may only be released upon written authorization from all parties with an interest in the funds, or pursuant to a court order. Diana cannot unilaterally transfer or disburse funds simply because she is closing her office; she must account for every dollar and obtain proper authorization before any transfer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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.
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