A broker-in-charge in Charlotte is sorting out a file issue involving trust money receipt, deposit timing, and exceptions. Which statement best applies under current North Carolina law?
Correct Answer
D) When a broker receives trust money in a fiduciary capacity, the broker generally must deposit it in the trust account no later than three banking days after receipt.
Answer D accurately states the operative NC rule: trust money received in a fiduciary capacity must be deposited into the trust account no later than three banking days after receipt, as codified in 21 NCAC 58A .0116. The phrase 'fiduciary capacity' is key — it limits the rule to funds the broker holds on behalf of another party, distinguishing trust money from funds payable directly to third parties. This is the controlling standard tested by the NC Real Estate Commission.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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