Broker Paul is about to open a new real estate brokerage in Hartford, Connecticut. He plans to hold client earnest money deposits. Which of the following steps is required under Connecticut law before Paul may begin accepting client funds?
Correct Answer
A) Paul must notify CREC of the trust account's existence and provide the account number and bank information
Under CGS § 20-324e and CREC regulations, a Connecticut real estate broker who maintains a trust account must notify the Connecticut Real Estate Commission of the account's existence, including the name of the financial institution and the account number. This notification requirement ensures CREC oversight and the ability to audit trust accounts when necessary.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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