When a broker is unsure how to handle an escrow, which action should be taken?

• A. Ignore
• B. Withdraw funds
• C. Sell the property
• D. Notify FREC in writing

Answer: (D)

Escrow handling requires following formal procedures and getting authoritative guidance when things aren’t clear. When a broker isn’t sure how to proceed with escrow funds, the proper move is to notify the Florida Real Estate Commission in writing. This action creates an official record and brings in regulatory guidance, helping protect the funds and all parties while reducing the risk of mistakes or accusations of improper handling. It shows due diligence and ensures there’s a clear path forward under the regulator’s oversight.

Ignorance of the issue isn’t acceptable because it can lead to mismanagement and liability. Withdrawing funds without proper authorization or a clear contract and rules can amount to misappropriation or commingling of escrow, which is typically prohibited. Selling the property doesn’t resolve the escrow question and would generally be outside the broker’s obligation in this context.