During a monthly reconciliation, a Pennsylvania broker discovers that her escrow account balance exceeds the total of all client ledger balances by $2,000. Under RELA, what is the broker's required course of action?
Correct Answer
C) Investigate the source of the overage immediately to identify and correct the underlying cause
Under RELA escrow management requirements, any discrepancy — shortage or overage — demands immediate investigation. An overage may indicate an unrecorded deposit, a disbursement that was never made to the rightful party, or a data entry error. Delaying or rerouting funds without identifying the cause violates the broker's fiduciary and recordkeeping obligations.
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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?
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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?
- → Under RELA, a Pennsylvania salesperson, Jake, earns a commission from a closed transaction. How should the commission be paid?
- → Under RELA, a Pennsylvania broker of record must maintain written office policies. Which of the following topics should these policies address?
- → Under RELA, a Pennsylvania broker of record, Sarah, is retiring and wants to close her brokerage. What steps must Sarah take regarding her affiliated salespersons?
- → 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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Previous Question
Under RELA, a Pennsylvania broker, Allen, maintains an escrow account at First National Bank. The bank fails and is taken over by the FDIC. Allen holds $300,000 in client escrow funds. Allen is concerned about FDIC coverage. Which statement is MOST accurate?
Next Question
Under RELA, a Pennsylvania broker maintains escrow records including a journal and individual client ledgers. During an SREC audit, the auditor requests to see these records. Must the broker make the records available?