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Real Estate Salesperson Exam — National Portion

Trust money (TX): practice questions

Our Real Estate (National) bank has 6 questions on this topic. Here are 4 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Texas

May a Texas sales agent have their own escrow account for client money?

  1. Yes, for rentals only
  2. No; they must give all money to their sponsoring broker
  3. Yes, after two years
  4. Yes, as long as the client consents in writing
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B. No; they must give all money to their sponsoring broker — Commingling trust money is prohibited.

Question 2 · Texas

By when must a Texas broker deposit trust money such as earnest money, unless the parties agree otherwise?

  1. By the close of business on the second working day after receiving it
  2. At closing, or within 30 days if the sales contract doesn't say anything different
  3. Within one week
  4. Whenever convenient
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A. By the close of business on the second working day after receiving it — It may go to a trust account or an authorized escrow agent.

Question 3 · Texas

Who generally owns interest earned on money in a Texas broker's escrow account?

  1. The seller
  2. The broker, always
  3. The depositor, unless they agreed in writing that the broker may keep it
  4. The state, which collects the interest to fund the Real Estate Recovery Trust Account
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C. The depositor, unless they agreed in writing that the broker may keep it — Interest is part of the trust money.

Question 4 · Texas

Under the Texas Real Estate License Act, when must a license holder account for or remit money that belongs to someone else?

  1. Within a reasonable time
  2. Only after a court order
  3. Within 1 year of closing
  4. Only when the license is renewed
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A. Within a reasonable time — Failing to do so is grounds for discipline under Occupations Code §1101.652.

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