Escrow & Title
An escrow account held by a Rhode Island broker must be:
AMaintained in a personal bank account for convenience
BKept in a separate account designated for client funds and not commingled with the broker's funds✓ Correct
CInvested in real estate investment trusts
DReported to the IRS as broker income
Explanation
Rhode Island license law requires brokers to maintain client funds (earnest money, security deposits) in a separate escrow or trust account, completely separate from the broker's personal or business operating funds. Commingling is a serious violation.
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