Florida Broker Practice Exam

If a broker maintains both sales and property management escrow accounts in one account, what is the maximum allowable amount of funds?

1. Up to $1,500

2. Up to $2,500

3. Up to $5,000

4. Up to $7,500

The correct answer is: Up to $5,000

When a broker maintains both sales and property management escrow accounts in a single account, Florida law stipulates that the total of all funds in that account must not exceed $5,000. This is to ensure adequate separation of funds and to prevent any confusion or mismanagement of client funds. By allowing a maximum of $5,000, the regulation aims to protect clients and ensure that funds designated for different purposes (sales transactions versus property management) remain identifiable without overcomplicating the financial management process. Any amount above this threshold would require the broker to establish separate accounts for sales and property management to maintain compliance with state regulations regarding escrow accounts.