Under TREC rules, when a broker closes a transaction and the earnest money has been properly applied, the broker's trust account should reflect:
Correct Answer
A) A decreased balance by the amount of the earnest money that was disbursed at closing
When earnest money is disbursed at closing, the trust account balance decreases by that amount. The funds are applied to the buyer's costs through the closing process, and the broker's trust account properly reflects the reduction.
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