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Questions and Answers
Under what circumstances are brokers allowed to deposit personal or business funds into their escrow account?
Under what circumstances are brokers allowed to deposit personal or business funds into their escrow account?
- Brokers may deposit personal or business funds in an escrow account to cover service charges assessed to the account or to maintain a minimum balance as required by the bank. (correct)
- Never—commingling personal or business funds with escrow funds is prohibited.
- Brokers may deposit such funds if the broker maintains one account that serves as both the personal or business account and an escrow account simultaneously.
- Brokers may make such a deposit only if it appears they will not be able to deposit the funds in the personal or business account by close of business the next business day.
What is not permitted regarding brokers and their escrow account?
What is not permitted regarding brokers and their escrow account?
- Brokers may deposit personal or business funds in an escrow account to cover service charges assessed to the account or to maintain a minimum balance as required by the bank. (correct)
- Brokers may deposit such funds if the broker maintains one account that serves as both the personal or business account and an escrow account simultaneously.
- Brokers may make such a deposit only if it appears they will not be able to deposit the funds in the personal or business account by close of business the next business day.
- None of the above
When can brokers deposit personal or business funds into their escrow account?
When can brokers deposit personal or business funds into their escrow account?
- Never—commingling personal or business funds with escrow funds is prohibited.
- Only if they are unable to maintain a minimum balance as required by the bank.
- Only if it appears they will not be able to deposit the funds in the personal or business account by close of business the next business day. (correct)
- Only if the broker maintains one account that serves as both the personal or business account and an escrow account simultaneously.
What is the main reason for prohibiting brokers from commingling personal or business funds with escrow funds?
What is the main reason for prohibiting brokers from commingling personal or business funds with escrow funds?
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