ContractsEarnest_money_and_escrowEASY
A broker receives a $5,000 earnest money check from a buyer. Where must the broker deposit this check?
Correct Answer
D) A trust or escrow account designated for client funds
Earnest money must be deposited into a trust or escrow account to keep client funds separate from brokerage operating funds.
Answer Options
A
The broker's personal savings accountB
The brokerage's operating accountC
The seller's personal bank accountD
A trust or escrow account designated for client fundsWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Related Topics & Key Terms
Key Terms:
earnest_money_and_escrowcontractstrust_accountdeposit
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