Minnesota State Real Estate Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Minnesota Real Estate Exam. Enhance your knowledge with flashcards and multiple-choice questions, each complemented by detailed hints and explanations. Ace your licensing exam!

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.

Under what condition can a broker maintain personal funds in a trust account?

If it is required to keep the account open
If they want to earn interest on the funds
If it is allowed by state law
If they are working with multiple clients

The correct answer is: If it is required to keep the account open

A broker can maintain personal funds in a trust account under the condition that it is required to keep the account open. This situation arises primarily when a trust account would incur certain fees or become inactive without a minimum balance. By placing a small personal amount in the account, the broker can ensure compliance with the financial institution's requirements, allowing the trust account to remain active. However, this practice should always be conducted in accordance with the specific regulations governing real estate transactions and trust accounts within the state, which often dictate the circumstances under which personal funds may be included. Choosing this answer reflects an understanding of the operational needs of a trust account, as distinct from motivations such as earning interest or accommodating multiple clients, which do not justify the inclusion of personal funds in the account under state laws.