Delaware License Law
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 balances — ensuring all client funds are properly maintained and accounted for✓ Correct
CThe reconciliation of the seller's and buyer's closing costs at settlement
DA government audit of all Delaware brokerage escrow accounts
Explanation
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. Reconciliation failures — undetected shortfalls or overages — can indicate improper handling of client funds.
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