In Maine, where must a broker deposit earnest money received from a buyer?
Correct Answer
B) Into a separate escrow or trust account maintained by the broker
Maine law requires brokers to deposit earnest money into a separate escrow or trust account. These funds must not be commingled with the broker's personal or business operating funds. The Maine Real Estate Commission regulates trust account requirements, and failure to properly handle escrow funds can result in disciplinary action, including license suspension or revocation.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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