Under Utah's trust account requirements, where must a brokerage deposit earnest money and other client funds?
Correct Answer
B) In a federally insured trust account in a Utah financial institution under the principal broker's name
Utah Division of Real Estate rules require that all client funds, including earnest money deposits, be placed in a federally insured trust account held in a Utah financial institution under the name of the principal broker or brokerage. Commingling with personal or business operating funds is prohibited.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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