Under RELA, when a buyer and seller have a dispute over an earnest money deposit held in the broker's escrow account, the broker cannot determine the rightful recipient. What should the broker do with the disputed funds?
Correct Answer
A) The broker may interplead the funds with the court to resolve the dispute
Under RELA and common practice, when a broker cannot determine the rightful recipient of disputed escrow funds, the broker may file an interpleader action with the court. This deposits the funds with the court and allows a judge to determine the proper disposition.
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Under RELA, a licensee may have their license suspended or revoked for several types of misconduct. Which of the following is NOT grounds for disciplinary action under RELA?
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Margaret, a Pennsylvania broker, receives a subpoena from the SREC requesting her brokerage records for an ongoing investigation of one of her salespersons. Under RELA, what is Margaret's obligation?