Which of the following is NOT typically held in an escrow account?

Prepare for the Massachusetts Real Estate Salesperson licensing exam. Utilize a variety of study modes, including flashcards and multiple-choice questions with comprehensive explanations. Achieve exam success!

An escrow account is primarily used to hold funds that are temporarily held by a third party on behalf of the buyer and seller in a real estate transaction, to ensure that the terms of a contract are met before the funds are released.

Operating monies, which are funds used for the ongoing expenses and operations of a property, such as maintenance costs and utility bills, do not typically belong in an escrow account. These are day-to-day business funds required for managing the property and are distinct from the funds that are placed in escrow, which generally include client deposits (earnest money), rent payments (when applicable and as agreed), and loan funding (typically held until closing).

The other options involve types of funds that are commonly associated with a real estate transaction and thus are appropriate to be held in escrow. For example, client deposits (earnest money) are secured in escrow until the transaction is completed or terminated. Rent payments may also be held in escrow in certain circumstances related to lease agreements or property management. Loan funding facilitates closing and is also typically managed through escrow.

Therefore, the funds meant for ongoing operations, like operating monies, are not typically placed in an escrow account, making this the correct choice.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy