A broker-in-charge in Mooresville is answering a client question about trust account reconciliation, audit trail, and account designation. Which statement best applies under current North Carolina law?
Correct Answer
C) North Carolina trust accounts are demand accounts and must be designated clearly as trust or escrow accounts.
North Carolina trust accounts are demand accounts and must be designated clearly as trust or escrow accounts.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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