Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A Florida real estate broker establishes an escrow account for earnest money deposits. According to Florida law, what is the maximum amount of personal funds the broker may keep in the sales escrow account?
- A$1,000.
- B$10,000.
- C$500.
- D$5,000.
Show answer & explanationAnswer & explanation
Correct answer: A. $1,000.
Florida law permits a broker to keep up to $1,000 of their own personal funds in a sales escrow account to cover bank service charges and avoid commingling. For a property management escrow account, the limit is $5,000.
Why the other options are wrong
- B. This amount exceeds the legal limit for both sales and property management escrow accounts.
- C. This amount is too low; the legal limit for a sales escrow account is higher.
- D. This is the limit for a property management escrow account, not a sales escrow account.
Broker Escrow Account Funds (Sales)
The maximum amount of personal funds a Florida real estate broker can keep in a sales escrow account to cover bank charges.
- Limit is $1,000 for sales escrow accounts.
- Limit is $5,000 for property management escrow accounts.
- Purpose is to avoid commingling and cover bank fees.
Memory trick: Sales escrow: 'One Grand' to keep it grand! Property management: 'Five for the tenants' fund!'