Question 33

Banks, brokers, and attorneys can hold escrow accounts.

Escrow accounts can be held by banks, brokers, and attorneys, as they are typically involved in transactions requiring neutral third-party oversight for the funds.

A) Lenders, brokers, and real estate commissions

While brokers can indeed hold escrow accounts, lenders typically do not hold such accounts, and real estate commissions are not entities that can hold escrow. Therefore, this option is incorrect.

B) Banks, salespersons, and title companies

Salespersons do not hold escrow accounts, as they are generally not licensed to manage funds in this manner. Although banks and title companies can, this option fails due to the inclusion of salespersons.

C) Banks, brokers, and attorneys

This option is correct because banks, brokers, and attorneys are all authorized entities that can hold escrow accounts, ensuring that funds are managed securely and impartially during transactions.

D) Salespersons, brokers, and lenders

This option is incorrect as salespersons and lenders are not typically authorized to hold escrow accounts. Only brokers among these can manage such accounts, making this choice invalid.

Conclusion

The correct answer, C, accurately identifies the entities that can hold escrow accounts, which include banks, brokers, and attorneys. The other options contain entities that either do not have the authority to manage escrow accounts or include incorrect combinations, thus failing to meet the requirements.