Under RELA, a Pennsylvania broker, Ray, dies unexpectedly while holding $45,000 in escrow funds across multiple transactions. What happens to the escrow funds and the brokerage?
Correct Answer
B) The SREC may appoint a temporary broker or take steps to ensure the proper disposition of escrow funds and the orderly winding down of the brokerage
Under RELA, when a broker of record dies, the SREC may take steps to ensure the proper disposition of escrow funds and the orderly wind-down or transfer of the brokerage. This may include appointing a temporary broker to handle pending transactions and escrow matters.
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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?
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- → 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
A buyer asks a Pennsylvania broker to hold a $10,000 earnest money check uncashed until the seller responds to the offer. The purchase agreement is silent on this point. Under RELA, what must the broker do?
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Under RELA, a Pennsylvania broker, Sheila, is asked by a seller client to hold a post-dated earnest money check from the buyer. The check is dated two weeks in the future. How should Sheila handle this situation?