Practice Of Real EstateBrokerage_operationsEASY
A broker receives a $5,000 earnest money deposit from a buyer. Where must the broker deposit these funds?
Correct Answer
D) A designated trust or escrow account
Earnest money and other client funds must be deposited into a designated trust or escrow account to keep them separate from the broker's personal or business operating funds.
Answer Options
A
The broker's personal checking accountB
A certificate of deposit in the broker's nameC
The seller's personal accountD
A designated trust or escrow accountWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Practice Of Real Estate Question
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Background Knowledge for Practice Of Real Estate
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Related Topics & Key Terms
Key Terms:
brokerage_operationspracticetrust_accountearnest_money
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