ContractsEarnest_money_and_escrowHARD
Which of the following is NOT a proper use of a broker's trust account?
Correct Answer
B) Paying the broker's personal car payment
Trust accounts hold client funds only. Using trust funds for personal expenses is commingling and conversion.
Answer Options
A
Holding earnest money depositsB
Paying the broker's personal car paymentC
Holding tenant security deposits for a managed propertyD
Holding collected rents pending disbursement to the ownerWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Contracts Question
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Background Knowledge for Contracts
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Real World Application in Contracts
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Common Mistakes to Avoid on Contracts Questions
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Related Topics & Key Terms
Key Terms:
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