Georgia License Law
A Georgia broker's trust account must NOT contain:
AEarnest money deposits
BSecurity deposits for managed properties
CThe broker's personal funds beyond a minimal balance allowed✓ Correct
DRental proceeds being held for distribution
Explanation
Commingling the broker's personal funds in a trust/escrow account is prohibited. The only broker funds that may be in a trust account are a minimal amount (often up to $200) to maintain the account or cover bank fees.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Math Concepts
State-Specific Concepts
Trust Account RulesEscrow Disputes
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