Practice Quiz

Texas Real Estate Exam

Category - Texas

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Under most circumstances it is unlawful for anyone to act as an escrow holder unless they have been licensed by the Commissioner of Corporations. Which of the following would be in violation of the law?
  1. The real estate broker who holds an escrow for a buyer and a seller whom he had represented in the sale
  2. The real estate broker who solicits escrows from his fellow brokers and agrees to make no charge for the work
  3. The attorney at law who handles an escrow for a fee on behalf of his clients’
  4. The licensed escrow company that is incorporated and advertises for escrows for a fee
Explanation
Answer: B. A real estate broker is allowed to handle an escrow without a special license, provided he or she had represented the buyer or seller in the original transaction. The law does not allow the broker to handle escrows under any other circumstances unless he or she forms a corporation and has it licensed as an escrow company.
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