Maine License Law
A Maine real estate broker must place all client funds received in a transaction into escrow:
AWithin 30 days of receipt
BPromptly upon receipt, typically within 1–3 business days✓ Correct
COnly upon written instruction from the client
DOnly after the inspection contingency has been removed
Explanation
Maine MREC rules require brokers to deposit client funds (earnest money, security deposits) promptly into an escrow account, typically within 1–3 business days of receipt.
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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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Math Concepts
State-Specific Concepts
License Law
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