Property Management
A Washington property management company discovers an employee has been embezzling trust account funds. The designated broker should immediately:
AHandle the matter internally without notifying anyone
BNotify the DOL, restore any client funds, and cooperate with any criminal investigation✓ Correct
CSimply terminate the employee and replenish trust accounts over time
DWait for clients to complain before taking action
Explanation
Discovery of trust account embezzlement requires immediate action: notifying the DOL as required by law, restoring client funds, and cooperating with criminal investigations. Covering up the embezzlement or delaying action could result in additional violations.
People Also Study
Related Washington Questions
- A Washington property management company manages units in multiple buildings. Trust account funds from different properties should be:Property Management
- A Washington real estate broker collects earnest money from a buyer. The designated broker is on vacation. The broker must still deposit the funds into the trust account within:Washington License Law
- Washington's Real Estate License Law (RCW 18.85) requires that a broker's trust account be maintained:Washington License Law
- Washington law requires a real estate broker to keep trust account records that are:Washington License Law
- A Washington escrow company holds $50,000 in earnest money when the buyer and seller have a dispute about who is entitled to the funds. The escrow company's proper course of action is:Escrow & Title
- A Washington real estate licensee receives an earnest money check. Under RCW 18.85, the licensee must deposit the funds into a trust account within:Washington License Law
- A Washington property management company discovers that a tenant has been running a daycare center from their apartment without authorization. The management company should:Property Management
- Under Washington's Deed of Trust Act (RCW 61.24), the non-judicial foreclosure process requires a minimum notice period before the trustee's sale of:Finance
Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
State-Specific Concepts
Trust Account Rules
Study This Topic
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →