Broker Patricia in Massachusetts is audited by the Massachusetts Board of Registration and inspectors find that her trust account records are incomplete — several deposit receipts are missing and disbursement records do not match bank statements. Under MGL Chapter 112, what potential consequence does Patricia face?
Correct Answer
B) Suspension or revocation of her broker's license and possible referral for criminal prosecution
Under MGL Chapter 112, Sections 87PP–87DDD, the Massachusetts Board of Registration has authority to suspend or revoke a broker's license for failure to maintain proper trust account records. Inadequate records that do not reconcile with bank statements may also indicate misappropriation of funds, which can result in criminal referral. The Board takes trust account violations extremely seriously, and the consequences can include loss of licensure and criminal charges.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
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.
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