A buyer's agent in Idaho, working under Clearwater Realty, is found to have placed client funds in his personal bank account rather than in the brokerage's trust account. Under Idaho law, which of the following best describes the consequences and responsible parties?
Correct Answer
A) Both the salesperson and the designated broker may face disciplinary action, as trust account compliance is a shared responsibility under Idaho law
Under Idaho Code § 54-2022 (trust account requirements) and § 54-2018 (designated broker supervision), both the salesperson who mishandled the funds and the designated broker who failed to supervise trust account compliance may face IREC disciplinary action. Idaho law places trust account obligations on the brokerage and its designated broker, while individual licensees are also personally responsible for their own conduct.
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Related Topics & Key Terms
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.
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