Massachusetts License Law
A Massachusetts broker receives a $10,000 earnest money deposit from a buyer. Under regulations, the broker's trust account must be:
AIn the broker's name personally
BA separate account designated as a trust or escrow account, clearly identified as holding client funds✓ Correct
CIn a national bank only
DJointly owned by the broker and the listing agent
Explanation
Massachusetts requires trust accounts to be clearly designated as trust or escrow accounts holding client funds, kept separate from the broker's personal and business accounts. The account must be identifiable as belonging to clients.
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