Jennifer, a designated broker in Maine, is retiring and wants to close her brokerage. She has several active listings and buyer representation agreements, as well as client funds held in her trust account. Under the Maine Real Estate Brokerage Act, what is her primary obligation regarding the trust account funds before she surrenders her license?
Correct Answer
B) She must disburse or transfer all trust account funds to the appropriate parties or to another licensed designated broker before surrendering her license
Under 32 M.R.S. § 13162, a designated broker closing a brokerage must properly disburse all trust account funds to the rightful parties or transfer them to another licensed designated broker who will assume responsibility for the active transactions. Trust funds cannot be abandoned or left in limbo when a brokerage closes.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
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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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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