Question

A listing broker in Minnesota received a commission check from the seller at closing. The broker would be committing a license law violation if he were to deposit the check in a ______ account.

A) personal
B) business
C) escrow
D) joint

Answer 1

The broker would be committing a license law violation if he were to deposit the check in a personal, business, or joint account.

Step-by-step explanation:

The correct answer is C) escrow.

A listing broker in Minnesota is responsible for handling funds related to a real estate transaction. When the broker receives a commission check from the seller at closing, it should be deposited into an escrow account. An escrow account is a separate account specifically designed to hold funds for safekeeping until a specified event or condition occurs.

By depositing the commission check into a personal, business, or joint account, the broker would be violating license law. This is because the broker has a fiduciary duty to the parties involved in the real estate transaction and must handle the funds in accordance with applicable regulations.