Tennessee Realtor State Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

The principal broker is responsible for managing trust accounts, which include handling earnest money deposits. This role is crucial in ensuring that transactions are conducted ethically and according to legal regulations. The principal broker oversees the financial aspects of transactions within their brokerage, maintaining proper accounting practices and ensuring that client funds are safeguarded. By managing these trust accounts, the principal broker ensures that all funds are used appropriately and in compliance with applicable laws, providing both security for clients and accountability within the brokerage.

In contrast, real estate agents and affiliate brokers typically engage in the day-to-day tasks of real estate sales and client interactions but do not handle trust account management directly. Property managers focus more on the operation and maintenance of rental properties rather than managing earnest money or other trust accounts. Hence, the responsibility of managing trust accounts is squarely within the domain of the principal broker.