Final answer:
TBH Realty Company did not adhere to trust account regulations; earnest money should have been deposited into a trust fund within three business days of receipt, not into the broker's personal account.
Step-by-step explanation:
The main answer to whether TBH Realty Company has followed all trust account regulations with the earnest money is option c. No, not only should the broker have deposited the earnest money within three business days of receipt of the funds, the money was to have been deposited into the broker's trust fund, not the broker's account. Trust account regulations dictate that earnest money, which is funds given to bind a contract such as a purchase agreement, must be placed in a designated trust account. This action is to ensure that the funds are held in an account separate from the broker's personal or business accounts, safeguarding the client's money.Explanation in more than 100 words: The primary importance of a trust account in real estate transactions is to protect all parties involved. When a buyer provides earnest money, it's considered a show of good faith that they intend to proceed with the purchase. The regulations surrounding trust accounts are strict to maintain transparency and avoid any misuse of funds. By not depositing the earnest money into the appropriate trust account within the stipulated timeframe, the broker may be in violation of statutory requirements and professional conduct standards. As such, depositing funds into a personal or general business account is not compliant with the fiduciary responsibilities of a real estate broker.Conclusion: TBH Realty Company did not follow the proper regulations. The earnest money was supposed to be deposited into a trust fund within three business days, not seven, and certainly not into the broker's personal account.