Question

If the trust account contains trust funds belonging to more than one beneficiary, the broker may not disburse any funds without the prior written consent of every principal who has funds in the account:

A) If such disbursal will reduce the balance of the total funds in the account to an amount less than the various owners have on deposit
B) Except to pay a deposit to escrow
C) Unless disbursement is for the purpose of refunding an earnest money deposit to an offeror
D) Except when disbursement will be used to close a real estate transaction of the broker

Answer 1

A broker may not disburse funds from a trust account with multiple beneficiaries without their written consent unless it is for specific exceptions such as paying a deposit to escrow, refunding earnest money, or closing a real estate transaction.

Step-by-step explanation:

If the trust account contains trust funds belonging to more than one beneficiary, the broker may not disburse any funds without the prior written consent of every principal who has funds in the account under several circumstances. One such scenario is if such disbursal will reduce the balance of the total funds in the account to an amount less than what the various owners have on deposit, indicating that funds must be kept intact according to the contributions of each participant. Additionally, there can be exceptions made for certain actions such as paying a deposit to escrow, refunding an earnest money deposit to an offeror, or using the disbursement to close a real estate transaction handled by the broker. These rules are outlined to ensure that the principals' interests are protected and their funds are managed according to their intentions as well as legal requirements.