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Practice Of Real EstateTrust AccountsMEDIUM

A training instructor in Carrboro is updating the policy manual on trust deposit timing and negotiable instruments. Which statement best applies under current North Carolina law?

Correct Answer

D) Proper handling of negotiable instruments protects consumers and helps the broker demonstrate compliance in an audit.

Proper handling of negotiable instruments protects consumers and helps the broker demonstrate compliance in an audit.

Answer Options
A
If the earnest money never becomes disputed, recordkeeping is unnecessary.
B
Audit concerns disappear once a transaction closes under current North Carolina rules
C
A broker can reconstruct deposit timing later from memory under current North Carolina rules
D
Proper handling of negotiable instruments protects consumers and helps the broker demonstrate compliance in an audit.

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Related Topics & Key Terms

Key Terms:

audit_trailconsumer_protectioncore_rules_and_definitionsdifficulty_3nc_statenc_trust_account_escrow_requirementsnegotiable_instrumentnorth_carolinatrust_deposit_timing_and_instruments
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