Broker Sandra is reviewing Connecticut trust account requirements with her new salesperson. She explains the rules governing proper trust account management. Which of the following statements about Connecticut trust accounts is NOT correct?
Correct Answer
C) The broker may retain any interest earned on the trust account as compensation for account administration
Option C is NOT correct and is therefore the answer. Under CGS § 20-324e, interest earned on client funds held in a trust account belongs to the clients, not the broker. The broker has no legal right to retain trust account interest as compensation for administrative duties. Doing so would constitute commingling or conversion of client funds.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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