The correct answer is C. Massachusetts Board guidance interprets 254 CMR 3.10 as allowing brokers—not salespersons or unlicensed employees—to maintain and exercise authority over brokerage escrow accounts.
The Board recognizes that modern firms may have several affiliated brokers, so it permits appropriately affiliated brokers within the brokerage to serve as account signato ries. What it does not permit is handing escrow-account control to an affiliated salesperson, accountant, bookkeeper, or unlicensed employee.
This allocation of authority reflects the broker ' s regulatory responsibility for safeguarding funds belonging to consumers. Earnest-money deposits and other transaction funds must remain segregated from business funds and properly accounted for.
A salesperson may receive a deposit during a transaction but must transmit it to the employing broker according to applicable procedures rather than assuming independent control of the escrow account.
Study Guide Reference: Massachusetts License Law — Escrow Accounts and Broker Responsibility.
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