Nebraska Real Estate Broker Exam — All Questions

A Nebraska broker who receives earnest money belonging to the parties must:

• a.Deposit it into the broker's personal account
• b.Place it in a trust or escrow account separate from the broker's own funds✓
• c.Apply it to the firm's operating expenses
• d.Give it directly to the seller

Earnest money and other funds belonging to others must be placed in a trust or escrow account kept separate from the broker's own funds. Commingling or converting trust money violates the license law, and the broker must account for and disburse the money according to the contract or a proper release, not use it for operating expenses.

When the parties to a Nebraska transaction dispute who is entitled to the escrowed earnest money, the broker should:

• a.Pay it to whichever party the broker prefers
• b.Keep it as a fee
• c.Hold the funds until the parties agree, a court orders disbursement, or another lawful resolution occurs✓
• d.Divide it equally and close the file

When entitlement to earnest money is disputed, the Nebraska broker must hold the funds until the parties agree in writing, a court orders disbursement, or another lawful method resolves the dispute. The broker may not unilaterally decide the dispute, keep the money, or arbitrarily divide it, which would risk a conversion claim.