Under RELA, a Pennsylvania broker is closing his brokerage and currently holds $25,000 in escrow funds across three pending transactions. Which of the following correctly describes his obligations regarding those funds?
Correct Answer
C) He must ensure all escrow funds are properly disbursed or transferred to appropriate parties before closing, and must notify the SREC of the brokerage closure
Under RELA (63 P.S. §455.404), a broker holds escrow funds in a fiduciary capacity and remains responsible for their proper disposition regardless of the brokerage's operational status. Before closing, the broker must disburse funds to rightful parties or transfer them to an appropriate custodian, and must notify the SREC of the closure so the Commission can verify compliance and update licensee records.
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More Pa Rela Brokerage Rules Questions
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- → Under RELA, a Pennsylvania salesperson, Beth, is terminated by her brokerage after a dispute over commission splits. Beth has an active listing with a seller client. What happens to Beth's listing after termination?
- → Under RELA, a Pennsylvania salesperson, Eric, receives a $3,000 earnest money check from a buyer during a weekend showing. Eric's broker is on vacation and unreachable. What should Eric do with the check?
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Previous Question
A Pennsylvania real estate transaction falls through and the broker is holding earnest money in escrow. The buyer and seller have each signed a written agreement directing the broker to return the funds to the buyer. Under RELA, which action is the broker required to take?
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A Pennsylvania broker receives a property management fee from a landlord client for services the brokerage has already rendered. Under RELA, where must this fee be deposited?