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Practice Of Real EstateTrust AccountsMEDIUM

A buyer representative in High Point is checking a study outline on trust deposit timing and negotiable instruments. Which statement is NOT accurate under current North Carolina law?

Correct Answer

B) A single note saying 'deposit received' is enough forever 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
Cash, check, wire, and other negotiable instruments may require different handling details, but they still must be properly documented and safeguarded.
B
A single note saying 'deposit received' is enough forever under current North Carolina rules
C
Brokers should distinguish between money they hold in fiduciary capacity and funds that are never entrusted to the brokerage, because the rule treatment differs.
D
Proper handling of negotiable instruments protects consumers and helps the broker demonstrate compliance in an audit.

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Why the Other Options Are Wrong

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Related Topics & Key Terms

Key Terms:

audit_traildifficulty_3fiduciary_capacitync_statenc_trust_account_escrow_requirementsnorth_carolinareceipt_of_fundsreversetiming_forms_exceptions_and_authoritytrust_deposit_timing_and_instrumentstrust_money
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