Tennessee Real Estate License Exam Practice Question
If an error is made in recording the date of deposit of funds into an escrow account, who is ultimately responsible for that error?
Correct Answer: D
Rationale: The principal broker of the firm holds ultimate responsibility for all transactions and record-keeping within the escrow account. This includes ensuring that deposits are accurately recorded. An administrative assistant (A) may handle documentation but does not bear the final responsibility. The depositor of the funds (B) is not accountable for how the funds are recorded once they are submitted. While the affiliate broker (C) may play a role in the transaction, the principal broker oversees compliance and accuracy, making them ultimately liable for any errors.
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