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Practice Of Real EstateTrust AccountsMEDIUM

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

Correct Answer

B) Payee language has no effect on whether funds are trust money under current North Carolina rules

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

Answer Options
A
Brokers should distinguish between money they hold in fiduciary capacity and funds that are never entrusted to the brokerage, because the rule treatment differs.
B
Payee language has no effect on whether funds are trust money under current North Carolina rules
C
The broker's records should show when funds were received, from whom, for what purpose, and how they were deposited or delivered.
D
Cash, check, wire, and other negotiable instruments may require different handling details, but they still must be properly documented and safeguarded.

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Related Topics & Key Terms

Key Terms:

core_rules_and_definitionsdifficulty_3fiduciary_capacitync_statenc_trust_account_escrow_requirementsnorth_carolinapayable_to_sellerreversetrust_accounttrust_deposit_timing_and_instrumentstrust_money
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