Broker Patricia receives a $5,000 earnest money deposit from a buyer on Monday. According to Tennessee Real Estate Commission rules, by when must Patricia deposit these funds into her trust account?
Correct Answer
C) Within a reasonable time, not to exceed three business days
TREC rules require that trust funds be deposited into the trust account within a reasonable time, which TREC interprets as not to exceed three business days of receipt. This gives brokers a practical window to process funds while ensuring timely safeguarding of client money.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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