Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

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Prepare for the Texas Real Estate SAE Exam with our educational quiz. Study using flashcards and multiple choice questions, each with detailed explanations to ensure you're ready to pass your exam!

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How often is a broker required to account for earnest money held in a trust account?

Weekly
Monthly
Quarterly
Annually

The correct answer is: Monthly

A broker is required to account for earnest money held in a trust account monthly because this is a crucial practice for ensuring transparency and proper management of client funds. Regular accounting allows for the identification of discrepancies or unauthorized transactions in a timely manner, thus maintaining the integrity of the trust account. Monthly accounting ensures that the broker can quickly address any issues that arise, keeps accurate records, and provides a clear financial picture to both the broker and the clients involved. Following this practice is essential for compliance with Texas real estate laws and regulations, which emphasize the importance of fiduciary responsibility in handling client funds. This frequency of accounting aligns with the standard industry practice, ensuring that funds are safe and properly accounted for at all times, thereby protecting both the clients and the broker's reputation.