Under Massachusetts real estate license law, which party is ultimately responsible for ensuring that a real estate brokerage's trust account is properly maintained and that all client funds are accounted for?
Correct Answer
D) The broker of record for the brokerage
Under MGL Chapter 112 and 254 CMR 3.00, the broker of record (the licensed broker who holds the brokerage license) is ultimately and personally responsible for the proper maintenance of the trust account, accurate record-keeping, and the safeguarding of all client funds held by the brokerage. This responsibility cannot be delegated away, even if the broker assigns day-to-day trust account management to an employee or office manager.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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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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