Which two names must appear in the title of a trust account?

Which two names must appear in the title of a trust account?

• A. Broker's name and buyer’s name
• B. Company name and selling broker's name
• C. Company name and employing broker's name
• D. Agent's name and property owner’s name

Answer: (C)

The correct choice highlights that both the company name and the employing broker's name must be included in the title of a trust account. This requirement ensures clarity regarding ownership and responsibility. The company name identifies the real estate firm responsible for the trust account, while the employing broker's name denotes the licensed individual who oversees the account and is accountable for managing its funds in accordance with Colorado real estate regulations. Having both names protects consumers by assuring that there is a designated responsible party managing the funds held in the trust account and adds a layer of accountability, ensuring that trust account funds are handled with integrity and professionalism. This regulation is crucial to maintain ethical standards in real estate transactions. In contrast, the other options either suggest the involvement of parties who aren't officially responsible for the trust account or combinations of names that do not meet the regulatory requirements set forth for trust accounts in Colorado. Hence, they do not satisfy the legal obligations for proper account titling within the real estate industry.

The correct choice highlights that both the company name and the employing broker's name must be included in the title of a trust account. This requirement ensures clarity regarding ownership and responsibility. The company name identifies the real estate firm responsible for the trust account, while the employing broker's name denotes the licensed individual who oversees the account and is accountable for managing its funds in accordance with Colorado real estate regulations.

Having both names protects consumers by assuring that there is a designated responsible party managing the funds held in the trust account and adds a layer of accountability, ensuring that trust account funds are handled with integrity and professionalism. This regulation is crucial to maintain ethical standards in real estate transactions.

In contrast, the other options either suggest the involvement of parties who aren't officially responsible for the trust account or combinations of names that do not meet the regulatory requirements set forth for trust accounts in Colorado. Hence, they do not satisfy the legal obligations for proper account titling within the real estate industry.