Escrow & Title
A Connecticut real estate broker who misappropriates funds held in their escrow account is subject to:
AOnly a written warning from the Real Estate Commission
BLicense revocation and potential criminal prosecution✓ Correct
CMandatory retraining and a fine only
DA civil lawsuit by the client only, with no license consequences
Explanation
Misappropriation of escrow funds is a serious violation in Connecticut that may result in license revocation by the Real Estate Commission and potential criminal prosecution for theft or embezzlement.
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
Math Concepts
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