Multistate Professional Responsibility Exam Practice Question
An attorney receives a deposit check from a real estate transaction involving a client. A broker claims a portion of the deposit as commission, but the client disputes that claim. Which approach is consistent with an attorney’s duty regarding property claimed by a non-client?
Place the deposit in the attorney’s business account and subtract the broker’s claim if the dispute is resolved in the broker’s favor.
Separate the disputed portion of the deposit in the trust account until the matter is resolved, disbursing what is not contested once appropriate.
Provide the deposit to the broker, then direct the broker to give a refund to the client if the dispute is resolved in the client’s favor.
Distribute the deposit to the client upon request, leaving the broker to pursue independent legal action.
Attorneys must hold funds subject to disputed claims in a trust account until there is a resolution. Delivering the money to either the client or the broker before that dispute is settled disregards the broker’s or the client’s potential interests. Placing funds in a personal or business account mixes them with attorney funds and compromises the requirement to maintain separate accounts. Retaining the disputed portion in a designated account safeguards the non-client’s interests while allowing other funds to be disbursed.
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