Final answer:
True, a broker of record must wait for written confirmation from the seller's lawyer that the sale is complete before commencing the commission disbursement from the real estate trust account. This is in line with the escrow process used in real estate transactions.
Step-by-step explanation:
The statement that a broker of record cannot transfer money out of the real estate trust account until they receive written notification from the seller's lawyer that the sale is complete, which marks the beginning of the commission disbursement process, is generally true.
When it comes to real estate transactions, escrow plays a vital role. It is an arrangement wherein an impartial third party holds onto funds during the process of a transaction until specific conditions are met. The escrow service ensures that the money is safely transferred to the seller only when all the terms of the sale are fulfilled, which typically includes the seller's lawyer confirming that the sale is complete. Additionally, escrow accounts are commonly used to handle recurring expenses such as property taxes and home insurance, allowing these bills to be paid as part of the normal monthly mortgage payment.