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When may a broker disperse funds from a trust account?

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Final answer:

A broker may disburse funds from a trust account for authorized transactions, payment of commissions, client's instructions, and legal obligations.

Step-by-step explanation:

A broker may disburse funds from a trust account in certain circumstances. These circumstances include:

Authorized Transactions: A broker can disburse funds from a trust account to complete authorized transactions on behalf of the client.

Payment of Commissions: A broker can disburse funds from a trust account to pay themselves or other agents involved in the transaction their commissions or fees.

Client's Instructions: A broker can disburse funds from a trust account if they have received clear instructions from the client regarding the use of funds.

Legal Obligations: When required by law, a broker can disburse funds from a trust account to fulfill their legal obligations, such as paying taxes or complying with court orders.

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