Connecticut License Law

A Connecticut broker inadvertently deposits a client's earnest money into the firm's operating account instead of the trust account. Upon discovering the error, the broker should:

ALeave the funds in the operating account for convenience
BImmediately transfer the funds to the correct escrow/trust account and document the error and correction✓ Correct
CReturn the funds to the client and restart the transaction
DNotify the Connecticut Real Estate Commission before taking any action

Explanation

Commingling client funds with operating funds is a violation, but an inadvertent error promptly corrected demonstrates good faith. The broker should immediately transfer the funds to the trust account, document the error and correction, and ensure procedures are in place to prevent recurrence.

Related Connecticut Connecticut License Law Questions

Practice More Connecticut Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Connecticut Quiz →