If a broker fails to implement one of the settlement procedures within the allowed time frame, what will they be charged with?

• A. Breach of contract with customer
• B. Misappropriation of escrow funds
• C. Negligence in handling paperwork
• D. Failure to account for, deliver, or maintain escrowed property

Answer: (D)

The key idea is how escrow responsibilities are handled and the specific violation that occurs when those duties aren’t met within the required time. When a broker is entrusted with escrow funds or property, they must account for it, deliver it, or maintain it properly according to the agreement and regulatory rules. If a settlement procedure isn’t executed within the allowed window, that means the broker isn’t accounting for or safeguarding the escrowed property as required. That failure directly corresponds to the charge of failing to account for, deliver, or maintain escrowed property.

While other issues like breaching a contract, misappropriating escrow funds, or being negligent about paperwork can be serious, they describe different problems. The scenario described points to the specific violation tied to how escrowed property is handled and timed, which is why that option is the best fit.