New Mexico License Law
A New Mexico broker who holds client funds for a closing that is delayed must:
AReturn the funds immediately
BContinue holding them properly in trust until the parties resolve the dispute or provide joint instructions✓ Correct
CDeposit them in the broker's personal account for safekeeping
DGive them to the seller as compensation
Explanation
When a closing is delayed or disputed, the broker must continue holding client funds in trust. Disbursement requires either joint written instructions from all parties, a court order, or NMREC dispute resolution.
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