Affiliate Broker James works for Broker Sandra's firm. A buyer gives James a $3,000 earnest money check made payable to Sandra's firm. Which of the following correctly describes James's responsibility regarding these funds?
Correct Answer
D) James must promptly deliver the funds to Broker Sandra or her authorized representative for deposit into the trust account
Under Tennessee license law, an affiliate broker cannot independently manage or deposit trust funds. Because an affiliate broker must work under a licensed broker, James must promptly deliver the earnest money to Broker Sandra or her authorized representative, who is responsible for depositing it into the firm's trust account in compliance with TREC rules.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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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