Under TREC rules, a broker closes a transaction and the earnest money is applied to the buyer's costs at closing. After closing, the broker discovers $500 of unclaimed trust funds in the account from a cancelled transaction 2 years ago. Under TREC rules, what should the broker do?
Correct Answer
D) Make reasonable efforts to locate the rightful owner of the funds and, if unsuccessful, handle them in accordance with the Texas Unclaimed Property Act
Under TREC rules and the Texas Unclaimed Property Act, the broker must make reasonable efforts to locate the rightful owner of unclaimed trust funds. If the owner cannot be found, the funds must be handled according to the Texas Unclaimed Property Act (escheat to the state).
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