Montana License Law
Under Montana license law, a licensee who becomes aware that their supervising broker is misappropriating client trust funds should:
ACover for the broker to protect the firm's reputation
BReport the misappropriation to the Montana Board of Realty Regulation✓ Correct
CQuietly transfer their license to another broker without reporting anything
DWait for the Board to discover the misconduct through routine audit
Explanation
A Montana licensee who learns of trust fund misappropriation has a professional and ethical obligation to report it to the Board of Realty Regulation. Covering up or ignoring known misconduct can expose the licensee to their own disciplinary action for failure to report.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
State-Specific Concepts
Trust Account RulesLicense Law
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