For the Rhode Island state portion, how should a candidate analyze a broker receives customer funds in a real estate transaction?
Correct Answer
A) The funds must be segregated and deposited in a recognized federally insured financial institution in Rhode Island separate from the broker’s own funds
R.I. Gen. Laws § 5-20.5-26 requires customer funds to be segregated and deposited in a separate account in a recognized federally insured financial institution in Rhode Island. Source basis: Rhode Island Department of State official regulation 230-RICR-30-20-2 §§ 2.18-2.19 and R.I. Gen. Laws § 5-20.5-26; checked 2026-04-30.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
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.
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.
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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