For the New Mexico state exam, how should a candidate analyze a qualifying broker receives money belonging to others in a real estate transaction?
Correct Answer
B) The money must be deposited only in a properly designated trust account at an acceptable financial institution unless another rule-approved arrangement applies
New Mexico trust-account rules require proper handling of money belonging to others. Source basis: 16.61.23 NMAC, Trust Accounts: trust account designation, records, deposits, disbursements, and commingling; checked 2026-04-30.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
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.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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