Georgia License Law
Under Georgia law, a broker's escrow account used for client funds must be maintained at:
AAny financial institution
BAn FDIC-insured depository institution in Georgia✓ Correct
CThe Federal Reserve Bank of Atlanta
DGREC's designated banking partner
Explanation
Georgia brokers must maintain trust accounts at FDIC-insured depository institutions located in Georgia. This provides consumer protection through federal deposit insurance.
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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.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
State-Specific Concepts
Trust Account RulesGREC Regulation
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