Does Illinois law require that all earnest money deposits be held in an interest-bearing escrow account?
Correct Answer
B) No, whether the account bears interest depends on the parties' written agreement and the broker's handling arrangements.
Illinois law does not impose a universal mandate that earnest money be held in an interest-bearing account. Under Illinois Administrative Code Title 68, Part 1450, the treatment of any interest earned on escrowed funds is governed by the parties' agreement and the broker's disclosed handling arrangements. Absent such an agreement requiring an interest-bearing account, a non-interest-bearing account is fully compliant.
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Related Topics & Key Terms
Key Terms:
Related Concepts
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
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.
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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