Tennessee Realtor State Practice Exam

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Who is responsible for keeping records of all funds deposited into the custodial or trust account?

The broker
The property manager
The accountant
The real estate agent

The correct answer is: The broker

The broker holds the responsibility for keeping records of all funds deposited into the custodial or trust account. This obligation is part of the broker's fiduciary duties, which require them to manage client funds with a high level of care and accuracy. Maintaining accurate records is crucial not only for compliance with legal standards but also for ensuring transparency and accountability in financial transactions related to real estate activities. The broker must ensure that all funds are properly accounted for, reflecting any deposits, withdrawals, and disbursements, thereby safeguarding the interests of clients and adhering to regulatory requirements. While other roles such as property managers, accountants, and real estate agents may be involved in financial transactions, ultimately, it is the broker who is legally responsible for the oversight and accuracy of the records associated with the custodial or trust account.