Escrow & Title
In Maine, a real estate broker's escrow account must be reconciled:
AAnnually only
BMonthly to ensure funds match client balances✓ Correct
COnly when a transaction closes
DAt the broker's discretion
Explanation
Maine MREC rules require brokers to reconcile escrow accounts monthly to ensure that the account balance matches the sum of all client fund balances. This prevents commingling and detects errors.
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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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
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