ESCROW ACCOUNTS QUIZ QUESTIONS
AND ANSWERS
The designated broker of ABC Real Estate writes a check for a commission payment.
Which of the following statements is true?
The check may be payable to a licensee affiliated with another brokerage.
The check may be payable to a licensee affiliated with another brokerage.
Commission payments cannot be paid from a brokerage's escrow account.
If it is for a real estate commission, it must indicate the related real estate transaction. -
Correct Answers -If it is for a real estate commission, it must indicate the related real
estate transaction.
The parties of a terminated transaction are in dispute as to the disbursement of the
earnest money funds and have filed a claim in the civil courts. In this case the broker: -
Correct Answers -Must turn over the funds to the court
Interest on an escrow account must be disbursed: - Correct Answers -After closing,
within 10 days of the broker's receipt of the next escrow statement
Which of the following is true regarding a broker's escrow account?
Earnest money must be held in an interest-bearing account located in a bank in
Missouri.
The broker, with MREC approval, may maintain an escrow account in a bank in an
adjoining state.
The broker may place up to $5,000 of his or her own funds into the escrow account.
Money placed in escrow may be used towards legal fees if a legal claim is made against
a broker. - Correct Answers -The broker, with MREC approval, may maintain an escrow
account in a bank in an adjoining state.
Security deposits must be held: - Correct Answers -Intact in a separate account from
the property management escrow account
A broker may earn interest on money held in an escrow account if: - Correct Answers -It
is disclosed to all parties and everyone agrees
A broker makes a good faith decision on disputed escrow funds and must notify the
parties: - Correct Answers -In writing and not disburse the funds if one of the parties
objects to the broker's decision
AND ANSWERS
The designated broker of ABC Real Estate writes a check for a commission payment.
Which of the following statements is true?
The check may be payable to a licensee affiliated with another brokerage.
The check may be payable to a licensee affiliated with another brokerage.
Commission payments cannot be paid from a brokerage's escrow account.
If it is for a real estate commission, it must indicate the related real estate transaction. -
Correct Answers -If it is for a real estate commission, it must indicate the related real
estate transaction.
The parties of a terminated transaction are in dispute as to the disbursement of the
earnest money funds and have filed a claim in the civil courts. In this case the broker: -
Correct Answers -Must turn over the funds to the court
Interest on an escrow account must be disbursed: - Correct Answers -After closing,
within 10 days of the broker's receipt of the next escrow statement
Which of the following is true regarding a broker's escrow account?
Earnest money must be held in an interest-bearing account located in a bank in
Missouri.
The broker, with MREC approval, may maintain an escrow account in a bank in an
adjoining state.
The broker may place up to $5,000 of his or her own funds into the escrow account.
Money placed in escrow may be used towards legal fees if a legal claim is made against
a broker. - Correct Answers -The broker, with MREC approval, may maintain an escrow
account in a bank in an adjoining state.
Security deposits must be held: - Correct Answers -Intact in a separate account from
the property management escrow account
A broker may earn interest on money held in an escrow account if: - Correct Answers -It
is disclosed to all parties and everyone agrees
A broker makes a good faith decision on disputed escrow funds and must notify the
parties: - Correct Answers -In writing and not disburse the funds if one of the parties
objects to the broker's decision
