Broker Tom operates a real estate brokerage in Trenton, New Jersey. He maintains a trust account at a federally chartered bank headquartered in Pennsylvania, with a branch located in Trenton. Under New Jersey regulations, is this arrangement permissible?
Correct Answer
B) Yes, because the bank has a branch physically located in New Jersey
Under N.J.A.C. 11:5-2.4, a broker's escrow trust account must be maintained in a bank, savings bank, savings institution, or credit union authorized to do business in New Jersey. A federally chartered bank with a branch located in New Jersey is authorized to do business in New Jersey and therefore qualifies. The requirement is about authorization to operate in NJ, not about the bank's home state of charter.
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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?
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