Kentucky CE Shop Practice Exam 2026 – Comprehensive Test Prep

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all
Session length

1 / 20

How should earnest money or other deposits be handled in a broker's trust account?

Deposits should be promptly placed into a designated escrow account, recorded, and disbursed only per contract terms or a court order.

Earnest money is trust funds that must be held in a designated escrow or trust account, not in the broker’s personal or business account. These funds should be deposited promptly, recorded accurately, and disbursed only according to the contract terms or a court order. Keeping them in an escrow account protects all parties, provides a clear audit trail, and preserves the broker’s fiduciary duty to handle funds separately from personal assets. They are not the broker’s money to invest or spend, and they do not automatically belong to the seller; they belong to the transaction and are released only when the contract specifies, or a court orders otherwise.

They may be kept in the broker's personal account temporarily.

They should be invested for return on funds immediately.

They belong to the seller by default.

Next Question
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy