A Florida real estate broker maintains an escrow account at First National Bank. The bank fails and is closed by federal regulators. The FDIC insurance covers $250,000, but the escrow account contains $400,000 in client funds. What is the broker's liability for the uninsured portion?
Correct Answer
A) The broker is personally liable for the full $150,000 shortage
The broker is personally liable for all client funds regardless of bank failure or FDIC limits. This is a strict liability standard in Florida. B is incorrect as proper procedures don't eliminate liability for client funds. C places improper burden on innocent clients. D is wrong as the recovery fund doesn't cover bank failures.
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Broker Martinez discovers that one of his sales associates has been placing earnest money deposits into his personal checking account instead of the brokerage's escrow account. What is the broker's primary responsibility under Florida law?
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Under Florida law, a broker's supervisory duties include all of the following EXCEPT: