Under RELA, a Pennsylvania broker receives a buyer's earnest money check made payable to the brokerage. Into which account must the broker deposit this check?
Correct Answer
D) The broker's escrow or trust account
Under RELA (63 P.S. §455.604), all client funds, including earnest money checks, must be deposited into the broker's escrow or trust account. This ensures proper segregation of client funds from broker funds.
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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?
- → 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?
- → Under RELA, a Pennsylvania broker of record, Steve, wants to change the brokerage's physical office location. What must Steve do under RELA?
- → Under RELA, a Pennsylvania salesperson must operate under the supervision of which type of licensee?
- → Under RELA, a Pennsylvania brokerage is required to maintain a physical office location. Which of the following is a requirement for the brokerage office?
- → 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?
- → Under RELA, how long must a Pennsylvania brokerage retain transaction records?
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Previous Question
During a routine SREC audit of a Pennsylvania broker's escrow account, the auditor finds that client ledgers are accurate, all funds are fully accounted for, and monthly reconciliations are current. The broker deposited one client's earnest money one business day after receipt rather than the same day. Which of the following best describes the audit outcome?
Next Question
Under RELA, a Pennsylvania broker, Craig, handles property management and receives both security deposits and monthly rent from tenants. Craig's bookkeeper accidentally deposits a tenant's $2,500 security deposit into the brokerage operating account instead of the escrow account. Craig discovers the error two days later. What should Craig do?