Nebraska License Law
A Nebraska broker who misappropriates escrow funds for personal use may face:
AOnly a written reprimand from the NREC
BLicense revocation, civil liability, and criminal charges for theft or embezzlement✓ Correct
COnly a requirement to repay the funds within 30 days
DSuspension of their trust account privileges for 1 year
Explanation
Misappropriation of client escrow funds is one of the most serious violations a broker can commit. It can result in license revocation, civil suits, and criminal prosecution for theft or embezzlement.
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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.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
State-Specific Concepts
Trust Account Rules
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