Agency
A Vermont listing agent receives an offer with earnest money. Under agency law, the agent's fiduciary duty regarding these funds is to:
ADeposit them into the agent's personal operating account
BHold them in a properly maintained escrow/trust account separate from the agent's personal funds✓ Correct
CGive them directly to the seller immediately
DReturn them to the buyer pending inspection
Explanation
Vermont license law requires that earnest money and all client funds be held in a properly maintained, separate escrow or trust account. Commingling client funds with personal or business operating funds is a serious violation.
Related Vermont Agency Questions
- If a Vermont real estate agent is representing a buyer and the buyer discloses their maximum purchase price, the agent should:
- Vermont's Buyer's Agency Agreement becomes binding when:
- A subagent in a Vermont real estate transaction:
- The concept of 'agency by ratification' in Vermont means:
- An agent's duty of confidentiality to a client in Vermont means the agent:
- A Vermont agent working as a buyer's agent who learns of a new listing before it hits the MLS may share this information with their buyer client because:
- A Vermont listing agent's duty to 'account' for client funds means:
- When does a Vermont real estate agency relationship BEGIN?
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →