Under TREC rules, a newly licensed broker is setting up a brokerage. Before the broker can accept earnest money from clients, what must the broker establish?
Correct Answer
B) A trust account at a federally insured financial institution in Texas
Under TREC rules, a broker must establish a trust account at a federally insured financial institution in Texas before accepting client funds such as earnest money. This ensures proper handling and protection of client funds from the start.
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