Practice Of Real EstateTrust AccountsEASY
A buyer representative in High Point is checking a study outline on trust account reconciliation, audit trail, and account designation. Which statement is NOT accurate under current North Carolina law?
Correct Answer
B) A broker with software need not reconcile manually or review the reports.
This choice is the inaccurate statement. The other three options describe the current North Carolina rule or guidance more accurately.
Answer Options
A
Negative ledger balances, unexplained math errors, or unresolved shortages are warning signs of trust account noncompliance.B
A broker with software need not reconcile manually or review the reports.C
Company funds in a trust account are tightly limited and should not be used to mask shortages or commingling.D
North Carolina trust accounts are demand accounts and must be designated clearly as trust or escrow accounts.Why This Is the Correct Answer
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Why the Other Options Are Wrong
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Related Topics & Key Terms
Key Terms:
account_designationcomminglingcompany_fundsdifficulty_2nc_statenc_trust_account_escrow_requirementsnegative_balancesnorth_carolinareversetiming_forms_exceptions_and_authoritytrust_account_reconciliation_audit_trail_and_designation
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