A Pennsylvania broker changes financial institutions and opens a new escrow account. Under RELA, which statement best describes the broker's obligations regarding the transition?
Correct Answer
A) The broker must transfer all client funds to the new account, update records accordingly, and close the old account in an orderly manner
Under RELA, a broker is responsible for maintaining accurate, current escrow records and ensuring all client funds are held in a properly designated account. When changing banks, the broker must transfer funds to the new account with full documentation, update all records to reflect the new account, and close the old account in an orderly way to prevent confusion, duplicate records, or accountability gaps.
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More Pa Rela Brokerage Rules Questions
Under RELA, what is the primary purpose of requiring Pennsylvania brokers to maintain escrow accounts?
Under RELA, a Pennsylvania broker of record has several statutory responsibilities regarding brokerage operations. All of the following are broker of record responsibilities EXCEPT:
Under RELA, a Pennsylvania salesperson, Rita, is offered a $2,000 gift card by a home inspector for referring clients to the inspector's business. May Rita accept this gift under RELA?
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?
A Pennsylvania broker is opening a new bank account to hold client funds. Under RELA, which of the following account titles would satisfy the statutory requirement for proper escrow account identification?
- → During a routine reconciliation, a Pennsylvania broker discovers that the escrow account balance is less than the total of all client deposits currently being held. Under RELA, which of the following best describes the broker's obligation?
- → 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?
- → 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, 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, where must a Pennsylvania brokerage display its current real estate license?
- → 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, when a Pennsylvania salesperson terminates their affiliation with a brokerage, what happens to the salesperson's license?
- → 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, a Pennsylvania salesperson, Monica, wants to transfer from Brokerage A to Brokerage B. What is required for the transfer to be valid under RELA?
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Previous Question
Under RELA, a Pennsylvania broker, Deborah, manages a portfolio of 20 rental properties. She collects rent from tenants on behalf of property owners. Deborah wants to simplify her accounting by depositing all rents into a single escrow account. Is this permissible under RELA?
Next Question
Under RELA, a Pennsylvania broker, Henry, holds $5,000 in escrow for a buyer's earnest money. The purchase agreement states that if the buyer defaults, the earnest money becomes the seller's liquidated damages. The buyer fails to perform and the seller demands the deposit. The buyer does not contest the default. What should Henry do?