Under the New Jersey Real Estate License Act, where must a licensed real estate broker deposit earnest money received from a buyer in a residential transaction?
Correct Answer
B) In a separate escrow or trust account maintained by the broker
Under N.J.S.A. 45:15-17(n) and NJREC regulations, a broker who receives funds belonging to others in connection with a real estate transaction must deposit those funds in a separate escrow or trust account. This account must be maintained at a New Jersey bank or savings institution and must be kept separate from the broker's personal and business operating funds at all times.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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