Idaho Real Estate Practice Exam

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Prepare for the Idaho Real Estate Test. Use flashcards and multiple-choice questions, with hints and explanations for each and get exam-ready!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is not a proper disbursement of the deposit from a trust account?

The payment of a broker's salary
Commissions paid to active agents
Paying for office supplies and utilities
Returning the deposit to the buyer if the deal falls through

The correct answer is: The payment of a broker's salary

The correct choice highlights an important principle in real estate regarding proper use of trust account funds. Trust accounts are designed to hold client deposits, ensuring that those funds are kept separate from the broker's or agency's operational funds. When considering the options, it becomes clear that using the deposit for a broker's salary is not an appropriate disbursement. Trust account funds must solely be used for transactions directly related to the client or their property, such as returning a deposit or paying commissions tied to closed transactions. This ensures that clients' funds are protected and not misallocated for unrelated expenses, such as salaries, office supplies, or utilities, which should be covered by the brokerage's operating budget and income. This distinction protects both the client and the brokerage by maintaining ethical standards and compliance with real estate laws regarding the handling of client funds.