Which statement is accurate regarding the pooled account requirement for earnest money?

• A. All deposits must be in a pooled account
• B. Pooled accounts are optional
• C. Only nominal deposits are subject to the pooled account requirement
• D. Earnest money never goes into a pooled account

Answer: (C)

Earnest money belongs in a broker’s trust (escrow) account. A pooled account is allowed only for very small, nominal deposits, not for larger sums. When the amount is more than nominal, the funds must be kept in a separate escrow account dedicated to that transaction to ensure clear accounting and prevent commingling. This is why the statement that only nominal deposits are subject to the pooled account requirement is the best fit: it reflects the idea that pooling is reserved for trivial amounts, while meaningful earnest money gets a dedicated account.