A compliance reviewer in Greenville is preparing an exam-prep note on trust account reconciliation, audit trail, and account designation. Which statement best applies under current North Carolina law?
Correct Answer
A) Company funds in a trust account are tightly limited and should not be used to mask shortages or commingling.
Company funds in a trust account are tightly limited and should not be used to mask shortages or commingling.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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