Idaho License Law

What does Idaho license law require regarding the handling of trust funds that belong to a third party (neither buyer nor seller)?

AThey may be held in the broker's operating account
BThey must be held in a separate trust account, properly identified, and disbursed only according to the parties' written instructions or court order✓ Correct
CThey must be returned immediately to the third party
DThey must be forwarded to IREC for safekeeping

Explanation

All trust funds held by Idaho brokers — regardless of their origin or purpose — must be maintained in properly identified, federally insured trust accounts. Funds may only be disbursed according to written instructions from the parties, per the terms of the purchase agreement, or pursuant to court order.

Related Idaho Idaho License Law Questions

Practice More Idaho Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Idaho Quiz →