Which of these is usually deposited into an escrow account by the buyer quizlet?

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Many states define escrow moneys as all moneys, promissory notes or any other type or manner of legal tender or financial consideration deposited with any person for the benefit of the parties to the transaction.

Escrow moneys include, without limitation, earnest moneys and security deposits, except those security deposits in which the person holding the security deposit is also the sole owner of the property being leased or sold and for which the security deposit is being held.

Earnest money constitutes escrow moneys and, as we said, it may be in the form of not only personal checks, but also cashier's checks, money orders, cash, or any other forms of legal tender.

Under the terms of a written agreement between a licensee and a client, certain money does NOT fall under the heading of "escrow moneys." An example of this would be rent money paid to a licensee for transmittal to the licensee's client (the owner) in a property management agreement.

The sponsoring broker will maintain a ledger for each transaction. The ledger will

1. Show the receipt and the disbursement of funds affecting a single particular transaction such as between buyer and seller, or landlord and tenant, or the respective parties to any other relationship.
Include the names of all parties to a transaction, the amount of funds the sponsoring broker received, and the date the broker received the funds.
2. Show the date of disbursement, the payee, the check number, and the amount disbursed, when funds are disbursed.
3. Segregate one transaction from another transaction.
4. The sponsoring broker will keep a separate ledger or a separate section of each ledger (as he or she chooses) for each of the various kinds of real estate transactions, such as leases and sales.

If the ledger is computer generated from the same data entry from which the journal is generated, the sponsoring broker must maintain copies of the bank deposit slips, bank disbursement slips, or other bank receipts, to account for the data on the ledger.

1. If a sponsoring broker transfers escrow moneys from an escrow account to another account for disbursement, he or she must keep a copy of all records reflecting the disbursement from the other account.
2. A sponsoring broker may choose to use a more sophisticated bookkeeping system based on sound accounting principles, including a system of electronic data processing equipment. However, if the broker chooses an alternate system, that system must contain or produce printed records that have all the information required by that state's laws.
3. Most states require that the broker make available to the real estate licensing agency all escrow records and related documents that he or she maintained in connection with the practice of real estate. These records must be available during normal business hours and usually must be submitted within 24 hours after a request.
4. Except as otherwise provided by law, the broker must keep copies of all escrow money instruments received from a principal as part of a transaction. This includes copies of all personal checks, cashier's checks, certified checks, money orders, promissory notes, or other financial instruments. The broker must also maintain copies and/or documentation of all disbursements or transfers into or out of an escrow account.
5. A sponsoring broker must keep all escrow records for 3-5 years. In many cases, the state will require that the broker keep the escrow records for the immediate prior 2 years in the office location. However, he or she can keep the balance of the records at another location.
6. If escrow records are lost, stolen, or destroyed due to fire, flood or any other circumstances, the sponsoring broker must report the loss to their state licensing agency within some specified period of time. The broker must also obtain copies of monthly bank statements, deposit and disbursement receipts, and any other available records, so he or she can reconstruct the lost escrow records.

Which of these is usually deposited into an escrow account by the buyer?

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