Under the Illinois License Act of 2000, which of the following statements correctly describes when a broker may remove earnest money from an escrow account?
Correct Answer
C) Escrow funds must remain on deposit until the transaction is consummated or terminated, unless an authorized disbursement exception applies.
The Illinois License Act of 2000 requires that escrow funds belonging to others remain on deposit in the designated escrow account until the transaction is either consummated or terminated. Unauthorized removal of escrow funds constitutes commingling or conversion, which are grounds for license suspension or revocation under the Act. Disbursement is only permitted through authorized channels, such as written agreement of all parties, a court order, or other statutory exceptions—not at the broker's unilateral discretion.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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