Today's questionReal Estate Practice
A real estate broker is required to maintain a trust account to hold earnest money deposits. What is the primary purpose of this account?
- A. To hold buyer deposits until closing
- B. To pay commissions to sales agents
- C. To hold seller proceeds until distribution
- D. To manage the broker's operating expenses
Answer
Answer: A
The primary purpose of a trust account is to hold buyer deposits, such as earnest money, until closing or until the deposit is otherwise disbursed.
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