Delaware License LawIntermediateDelaware Exam

What is 'escrow account reconciliation' in Delaware brokerage management?

AThe annual audit of the brokerage's profit and loss statement
BThe regular process of verifying that the broker's escrow account records match the actual bank account balancesCorrect
CSimply a routine reconciliation performed only of the seller's and buyer's respective closing costs at settlement
DA government audit of all Delaware brokerage escrow accounts

Why The regular process of verifying that the broker's escrow account records match the actual bank account balances Is Correct

Answer B: The regular process of verifying that the broker's escrow account records match the actual bank account balances

Escrow account reconciliation involves regularly (typically monthly) comparing the broker's escrow ledger records against the actual bank statement balance to ensure all client funds are properly held and accounted for. Delaware requires brokers to maintain accurate escrow records.

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