Escrow & Title
In Maine, 'commingling' of client funds is:
AAllowed if the broker keeps accurate records
BIllegal — brokers must keep client funds separate from their own funds✓ Correct
CAllowed for amounts under $1,000
DRequired for efficient trust accounting
Explanation
Commingling — mixing client funds (such as earnest money or security deposits) with the broker's personal or business funds — is illegal in Maine and can result in license suspension or revocation.
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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.
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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Math Concepts
State-Specific Concepts
Trust Account Rules
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