Which type of funds must a Montana real estate broker hold in a trust account, kept separate from all other funds?
Correct Answer
B) Client funds such as earnest money and deposits
Under Montana law (Mont. Code Ann. § 37-51-321), a broker must deposit all client funds — such as earnest money, security deposits, and other funds received on behalf of clients — into a separate trust account. Commingling client funds with the broker's personal funds, commission earnings, or operating expenses is prohibited and can result in license suspension or revocation.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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