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When there are unclaimed trust funds, the broker must _____________

A) send the funds to the Mississippi Real Estate Commission.
B) donate the funds to the Affordable Housing Program.
C) send the funds to the Mississippi Association of REALTORS®.
D) keep the funds in the trust account until the brokerage closes.

1 Answer

1 vote

Final answer:

Brokers in Mississippi must escheat unclaimed trust funds to the state's unclaimed property division as per state law and regulations, not to any organizations or programs mentioned in the options.

Step-by-step explanation:

When unclaimed trust funds are encountered in the state of Mississippi within the real estate industry, brokers are required to follow specific guidelines. According to the Mississippi Real Estate Commission (MREC), the funds must be handled in accordance with state law and commission regulations. In general, if efforts to locate the rightful owner of the unclaimed trust funds fail, and the funds remain unclaimed for a period specified by state law, the brokerage must escheat the funds to the state. Escheating is a process of transferring unclaimed property to the state. In this specific case, the answer is not provided in the question, but typically, such funds would be turned over to the state's unclaimed property division, not the options listed such as the MREC, the Affordable Housing Program, or the Mississippi Association of REALTORS®. The brokerage is not allowed to keep the funds indefinitely.

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