FREC requires brokers to reconcile escrow accounts:
Question & Answer
Review the question and all answer choices
Weekly
A is incorrect because while weekly reconciliation might seem more diligent, FREC does not require this frequent reconciliation. Such a requirement would impose an unnecessary administrative burden on brokers without providing additional protection beyond monthly oversight.
Monthly
Quarterly
C is incorrect because quarterly reconciliation would not meet FREC's requirements. This longer interval could allow discrepancies to persist undetected for up to three months, increasing the risk of improper fund handling and potential violations.
Annually
D is incorrect because annual reconciliation is insufficient to meet FREC's standards for escrow account management. Such infrequent oversight would not provide adequate protection for client funds and could lead to serious compliance issues.
Why is this correct?
B is correct because FREC specifically mandates monthly reconciliation of escrow accounts. This frequency ensures proper oversight of client funds while maintaining practical business operations, balancing compliance requirements with administrative efficiency.
Continue Learning
Explore this topic in different formats
More Practice of Real Estate Videos
Continue learning with related video lessons
What is the max civil penalty per violation in Minnesota?
2:52 • 0 views
If an auditor visits a broker's office in Ohio, how many years of records are required?
2:47 • 0 views
Is commingling legal in Mississippi?
2:50 • 0 views
Utah license law has three levels of licensure. What are they?
2:03 • 0 views
Georgia has real estate license reciprocity agreements with which states?
2:44 • 0 views
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.