A Pennsylvania broker places a small amount of personal funds into his escrow account to cover bank service charges and prevent the balance from falling below the bank's minimum requirement. Under RELA, is this permissible?
Correct Answer
B) Yes, a broker may keep a nominal amount of personal funds in the escrow account solely to cover bank charges and maintain the minimum balance
RELA and the Pennsylvania Real Estate Commission's regulations recognize a limited exception to the commingling prohibition: a broker may maintain a nominal amount of personal funds in the escrow account strictly to cover bank service charges and satisfy the bank's minimum balance requirement. This exception exists to prevent bank fees from inadvertently depleting client funds. Any personal funds beyond this nominal amount would constitute prohibited commingling under 63 P.S. §455.604.
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More Pa Rela Brokerage Rules Questions
Under RELA, a Pennsylvania brokerage must ensure that all licensees affiliated with the brokerage have completed what requirement before practicing real estate?
Under RELA, a Pennsylvania broker of record has a duty to ensure that all affiliated licensees maintain current and active licenses. If the broker discovers that a salesperson's license has expired, what must the broker do?
Under RELA, a Pennsylvania brokerage receives a written complaint from a consumer about one of its salespersons. The broker of record must take what immediate action?
Under RELA, where must a Pennsylvania brokerage display its current real estate license?
Under RELA, a Pennsylvania brokerage employs both salespersons and associate brokers. What is the key difference between a salesperson and an associate broker under RELA?
- → Under RELA, when a Pennsylvania salesperson places their license with a new brokerage, the salesperson is said to be operating under the authority of which individual?
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- → Under RELA, a Pennsylvania broker of record must maintain written office policies. Which of the following topics should these policies address?
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- → Under RELA, when a Pennsylvania salesperson terminates their affiliation with a brokerage, what happens to the salesperson's license?
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- → Under RELA, how long must a Pennsylvania brokerage retain transaction records?
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Under RELA, a Pennsylvania broker is required to reconcile her escrow account on a monthly basis. Which of the following best describes what that reconciliation process requires?
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Under RELA, a Pennsylvania broker must follow specific rules regarding the escrow account. All of the following are requirements for escrow accounts EXCEPT: