Maine Real Estate License Practice Exam

What is not a requirement for maintaining a trust account by a designated broker?

1. Using a specific type of bank account

2. Conducting regular audits

3. Reviewing all transactions monthly

4. Keeping records for a minimum period

The correct answer is: Conducting regular audits

Maintaining a trust account as a designated broker involves adhering to various legal and regulatory requirements to ensure proper handling of clients' funds. The correct choice emphasizes that conducting regular audits, while highly recommended for good business practices, is not a legally mandated requirement for maintaining a trust account in Maine. The law typically requires that trust accounts be set up in specific ways, such as using a designated type of bank account specifically for holding trust funds. This ensures clarity in financial management and protects clients' interests. Additionally, there is a requirement to review all transactions regularly—often on a monthly basis—to ensure accuracy and compliance with regulations. Lastly, retaining detailed records for a minimum period is essential for accountability and regulatory compliance. In summary, while audits can be beneficial, they are not a statutory requirement, making this choice the correct answer in the context of trust account maintenance by a designated broker.