Broker Michael operates three branch offices in New York State and maintains trust accounts for client deposits. A dispute arises over a $10,000 deposit, with both buyer and seller claiming entitlement to the funds. Under New York law, what must Michael do with the disputed funds?
Correct Answer
A) Hold the funds in the trust account until receiving a court order or written agreement from all parties
Under New York law, when there is a dispute over trust account funds, the broker must hold the funds until either receiving a court order directing disbursement or obtaining written agreement from all parties with claims to the funds. This protects the broker from liability and ensures proper resolution.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A nonconforming use is a property use that was legally established before a zoning change but no longer complies with the current zoning ordinance. It is commonly called a "grandfathered" use.
A planned unit development (PUD) is a zoning classification that allows mixed land uses (residential, commercial, recreational) within a single development with flexible zoning standards. Homeowners typically own their lot and share common areas.
Police power is the government's authority to enact laws and regulations to protect the public health, safety, morals, and general welfare. It is the broadest power government has over private property.
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- → Under New York Department of State fee schedules, what is the fee required to sit for the real estate salesperson licensing examination?
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