Wisconsin License Law
A Wisconsin real estate broker who holds client funds in a trust account that earns interest must:
AKeep all earned interest as broker compensation
BHandle interest per the terms of the trust agreement or applicable law; interest may belong to the client✓ Correct
CReport the interest to DSPS annually
DDonate interest to a designated charity
Explanation
The handling of interest earned on trust accounts depends on the terms agreed to by the parties; in some Wisconsin interest on lawyer trust account (IOLTA)-style programs, interest may be directed to designated purposes.
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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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
State-Specific Concepts
Trust Account Rules
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