Tennessee Realtor State Practice Exam

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Prepare for the Tennessee Realtor State Exam. Use flashcards and multiple-choice questions, each with hints and explanations. Ensure your success!

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What must brokerage firms do if they receive an escrow account waiver and decide to accept funds?

Wait until the next business day to open an escrow account
Open an escrow account within one day and deposit funds that same day
Notify the commission of their decision
Use a personal account for holding funds

The correct answer is: Open an escrow account within one day and deposit funds that same day

When a brokerage firm receives an escrow account waiver and chooses to accept funds, the correct action is to open an escrow account within one day and deposit the funds that same day. This requirement ensures transparency and accountability in managing client funds, which are typically held in trust until the completion of a transaction. The timely establishment of the escrow account and the immediate deposit of funds help protect clients' interests and comply with regulatory standards governing real estate transactions. This process ensures that the brokerage adheres to best practices in fiduciary duty and financial management within the real estate industry.