Florida Broker Practice Exam

What must brokers do with their monthly escrow account reconciliations?

1. Send them to the Department of Business and Professional Regulation

2. Review, sign, and date them

3. Keep them for 1 year

4. File them in the office permanently

The correct answer is: Review, sign, and date them

Brokers are required to review, sign, and date their monthly escrow account reconciliations to ensure accuracy and accountability. This process is crucial as it verifies that the reconciliations accurately reflect the escrow account transactions and balances. By signing and dating these reconciliations, brokers are affirming that they have performed a proper review and that the records are correct as of that date. This practice serves as an internal control measure to prevent and detect any discrepancies or errors in the handling of client funds. The other options relate to actions that brokers do not typically have to perform regarding escrow account reconciliations. While record-keeping is important, the requirement to send reconciliations to regulatory bodies or to file them permanently is not a standard practice. Instead, maintaining the reconciliations at the office for a specific duration or filing them permanently is part of the broker's record-keeping protocol, but the immediate responsibility focuses on the review and personal validation of the records through signing and dating them.