TRUST ACCOUNTING Flashcards
1
Q
TRUST ACCOUNTING PURPOSE (2)
A
- TO PROTECT CONSUMER FUNDS
2. FIDUCIARY DUTY TO ACCOUNT FOR FUNDS/VALUABLES RECEIVED BY A LICENSEE WHILE PERFORMING ANY REAL ESTATE ACTIVITY
2
Q
TYPES OF TRUST FUNDS
A
- EARNEST MONEY
- SECURITY DEPOSIT
- DOWN PAYMENT
- ADVANCED RENTAL
- OTHER DEPOSITS
3
Q
EARNEST MONEY
A
PAYMENT MADE BY A PROSPECTIVE PURCHASER OF REAL ESTATE AS EVIDENCE OF GOOD FAITH
4
Q
SECURITY DEPOSIT
A
MONEY DEPOSITED BY OR FOR A TENANT WITH THE LICENSEE WHICH IS PLACE IN A TRUST FUND
*LANDLORD MAY CLAIM PORTIONS TO OFFSET DAMAGES OR NONPAYMENT OF RENT
5
Q
DOWN PAYMENT
A
MONEY TO BE APPLIED FOR SOME USE AT A LATER TIME
6
Q
ADVANCED RENTAL
A
MONEY TO BE APPLIED TOWARDS FUTURE RENT
7
Q
OTHER DEPOSITS
A
MONEY TO BE USED FOR DAMAGES CAUSED BY OTHERS
EX: PETS, CHILDREN, CLEANING
