Record Keeping and Trust Accounts (4 items, 5%)

Question 1

All funds belonging to others, related to property purchase, such as __________ ______ deposits, must be deposited into the broker’s or closing entities trust account not later than __ _________ days following the broker’s notice of contract _________.

Answer 1

earnest money 3 business days acceptance.

Question 2

All funds belonging to property management must be deposited in the property management accounts within __ business days.

Answer 2

5

Question 3

*Trust accounts must be _________ at least monthly.*

Answer 3

reconciled

Question 4

In the absence of a contract to the contrary, if the Contract to Buy is completed, or the earnest money is _________ …. accrued interest, if any, belongs to the _________.

Answer 4

forfeited

seller.

Question 5

If the contract fails, the earnest money and interest normally belong to the _______ (buyer/seller).

Answer 5

buyer.

Question 6

Unclaimed trust funds are paid to the ________ of the State of Colorado under the ________ _______ Act.

Answer 6

treasurer Unclaimed Property

Question 7

The broker may release funds when:

• in receipt of a final judgement for ____________,
• there is a final decision of a binding _______ ________,
• or when a _________ action has been filed.

Answer 7

disposition

dispute resolution

interpleader

Question 8

The broker must retain the following records for how long after closing?

• Contract to Buy & Sell (purchase agreement)
• Residential Property Disclosure
• Lead-based Paint Disclosure (if built before what year?)

Answer 8

4 years for all

1978