Arkansas Real Estate Practice Exam

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What is required of a principal broker in regard to trust fund management?

Must maintain a personal account for trust funds
Either maintain a separate trust account or have an escrow agent
Donate a portion to charity
Invest them for short-term gains

The correct answer is: Either maintain a separate trust account or have an escrow agent

A principal broker is responsible for managing the trust funds of their clients, which includes any funds held in escrow for real estate transactions. As such, it is necessary for a principal broker to either maintain a separate trust account for these funds or have them held by an escrow agent. Options A, C, and D are incorrect because maintaining a personal account, donating funds to charity, or investing for short-term gains would not fulfill the principal broker's duty to properly manage and safeguard the trust funds.