Escrow & Title
A real estate agent involved in a transaction should NOT handle closing funds because:
AThis is the seller's responsibility
BHandling closing funds requires a separate escrow/title license and creates liability risks for the agent✓ Correct
CClosing funds must be handled by the MLS
DFederal law prohibits real estate agents from touching money
Explanation
Settlement funds should be handled by a licensed title company, escrow company, or attorney — not by the real estate agent. Agents handling closing funds could commingle them and expose themselves to trust account liability and possible legal issues.
Related Arkansas Escrow & Title Questions
- In Arkansas, the circuit court clerk is the official responsible for:
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- In Arkansas, a valid deed requires all of the following EXCEPT:
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