Broker James in Virginia closes his brokerage and surrenders his license. At the time of closure, his trust account contains $35,000 in client funds from multiple ongoing transactions and managed properties. Under Virginia law, what is James's obligation regarding these trust funds?
Correct Answer
D) James must properly account for and disburse or transfer all trust funds to the appropriate parties or a successor broker before surrendering his license
Under Virginia license law and VREB regulations, a broker who closes a brokerage or surrenders a license retains the obligation to properly account for and disburse all trust funds. This means James must either disburse the funds to the rightful parties (with proper authorization) or transfer custody to a successor broker who will assume responsibility for the ongoing transactions. He cannot abandon trust funds or retain them without a valid license and active trust account.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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