New Jersey Real Estate Practice Exam Free Practice Question
Which of the following can hold escrow accounts?
Correct Answer: C
Rationale: Escrow accounts can be held by entities that are legally authorized to manage funds during real estate transactions. Banks, brokers, and attorneys are equipped to handle these accounts, ensuring compliance with regulations and proper fund management.
Option A is incorrect as real estate commissions do not typically hold escrow accounts; they facilitate transactions instead. Option B is misleading; while banks and title companies can hold escrow, salespersons generally cannot. Option D is also inaccurate since salespersons lack the authority to manage escrow accounts independently, making brokers and lenders insufficient without the inclusion of banks or attorneys.
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