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A transaction-file auditor in Greenville is reviewing trust money receipt, deposit timing, and exceptions. Which statement is NOT accurate under current North Carolina law?

Correct Answer

D) Every check connected to a transaction, including a due diligence fee payable directly to seller, is trust money.

This choice is the inaccurate statement. The other three options describe the current North Carolina rule or guidance more accurately.

Answer Options
A
Proper documentation of receipt, deposit, and payee information is part of complying with North Carolina trust money rules.
B
Trust money may be received in different negotiable forms, but the broker still must handle and record it according to the Commission rules.
C
A due diligence fee made payable directly to the seller is not deposited into the broker's trust account merely because it is delivered with the contract.
D
Every check connected to a transaction, including a due diligence fee payable directly to seller, is trust money.

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Related Topics & Key Terms

Key Terms:

due diligence feetrust moneyfiduciary capacityNC Offer to Purchasecommingling
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