New York License Law
The New York DOS may conduct an audit of a broker's escrow account. If a shortage is found due to innocent bookkeeping error (not misappropriation), the DOS may:
AOnly revoke the broker's license immediately
BIssue a warning letter and require the shortage to be corrected, with possible fine✓ Correct
CRequire the broker to attend continuing education only
DTake no action if the shortage is under $1,000
Explanation
While intentional misappropriation of escrow funds is grounds for license revocation, an innocent bookkeeping error that results in an escrow shortage may result in a DOS warning, required correction of the shortage, and possibly a fine. The DOS considers the nature and intent of the violation when determining the appropriate sanction.
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