North Dakota Real Estate Practice Exam

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Get ready for the North Dakota Real Estate Exam. Prepare with flashcards, multiple choice questions, and expert-curated content to ensure your success. Improve your knowledge and tackle the exam with confidence!

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What amount can a broker keep specifically identified to cover service-related costs in a trust account?

$200
$300
$500
$1000

The correct answer is: $500

The correct amount that a broker can retain in a trust account for service-related costs is $500. This limit serves as a guideline to maintain a clear distinction between client funds and the broker's own funds. The purpose of this rule is to ensure that trust accounts primarily contain money belonging to clients, providing transparency and protecting clients' interests. Allowing brokers to keep a specified amount in the trust account helps address minor expenses associated with managing that account, such as bank fees and specific operational costs related to the services provided to clients. By setting the limit at $500, the regulations aim to minimize the risk of commingling client funds with personal or business funds, which is a vital aspect of ethical real estate practice. This understanding is crucial for real estate professionals in North Dakota, as it ensures compliance with state regulations while promoting accountability and trust in real estate transactions.