Arizona License LawIntermediateArizona Exam
Under Arizona law, a real estate broker who holds trust funds belonging to clients must maintain a separate trust account. Which of the following is PROHIBITED in a trust account?
ADepositing earnest money from multiple transactions
BKeeping a minimum operating balance of the broker's own funds
CMaintaining a broker's own funds exceeding $500 in the trust accountCorrect
DDepositing rent proceeds from managed properties
Why Maintaining a broker's own funds exceeding $500 in the trust account Is Correct
Answer C: Maintaining a broker's own funds exceeding $500 in the trust account
A broker may keep a small personal balance (not to exceed $500) in the trust account solely to cover bank fees, but maintaining more than $500 of the broker's own funds in the trust account constitutes commingling.
Key Arizona License Law Terms in This Question
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
State-Specific Concepts
Trust Account Rules
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