Maryland License Law (alternative)
A Maryland broker's trust (escrow) account is audited by MREC and found to be short. This could indicate:
ANormal banking fluctuations
BConversion or misappropriation of client funds — a serious violation✓ Correct
CAccounting errors with no legal implications
DAn SDAT error
Explanation
A trust account shortage means client funds are missing, which could indicate conversion (misuse of client funds). This is a serious violation leading to license suspension/revocation and potential criminal prosecution.
Related Maryland Maryland License Law (alternative) Questions
- A Maryland real estate licensee who has been convicted of a crime involving moral turpitude must report it to MREC within:
- A Maryland salesperson who wishes to operate independently without a supervising broker must first:
- Which of the following individuals is required to hold a Maryland real estate license?
- A Maryland licensee who provides false information on a license renewal application may face:
- Under Maryland law, a broker can only operate a branch office if:
- Under MREC regulations, which of the following actions by a Maryland licensee constitutes 'misrepresentation'?
- Under Maryland law, a salesperson's license is 'inactive' when:
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