North Carolina Real License Law, Trust Accounts, Commission Flashcards
When dealing with trust accounts brokers must use a high level of ___________________, is personally responsible for the funds in the trust account, and is subject to a commission ____________ at any time.
Accuracy of care
Audit
Provisional brokers are not allowed to have _______________ ?
TRUST ACCOUNTS
The broker may deposit $____ into the trust account to cover service charges, including printing checks.
$100
The broker may deposit more than $_____ of __________________ to cover service charges if banking charges are higher than $____.
$100
Personal funds
$100
A broker can nEver place personal fins into the trust account for loans to clients or any other purpose, except to cover service charges in the account.
T or F?
T
The firm/broker can never “borrow” trust funds to cover operating expenses of the firm.
T or F?
T
Commissions or other funds that have been earned and belong to the broker must be removed from trust account __________?
Within 30 days!
When managing homeowners associations, the broker must have a ____________ trust account for each HOA.
Separate
Earnest money and tenant security deposits other than cash must be deposited no later than ____________ following acceptance of the offer to purchase or lease.
THREE BANKING DAYS
date of acceptance does not count as a day
Earnest money disputes…
Escrow agent may attempt to obtain a ______________ from both parties consenting to disbursement of the trust funds.
Written release
Earnest money disputes…
Must hold the trust funds until the dispute is litigated by the parties and disbursement is ____________________.
Ordered by a court.
Earnest money disputes…
May notify both parties in writing that _______________, the agent will transfer the disputed funds ( except for residential tenant security deposits ) to the clerk of court in the county where the property is located.
90 days after giving notice.
Rents, settlement proceeds, cash, and other trust funds must be deposited in a trust account no later than _______________ after _________ of the funds.
3 banking days
Receipt
