What happens if a broker fails to follow an escrow disbursement order issued by the commission?

If a broker fails to follow an escrow disbursement order issued by the commission, the broker may face civil damages. This situation arises because escrow disbursement orders are legally binding directives aimed at protecting the interests of the parties involved in a real estate transaction. By not adhering to these orders, a broker can be held liable for any resulting harm or losses, which can manifest as civil penalties that the affected parties may seek through legal channels.

In this context, the responsibilities of a broker include ensuring compliance with regulations set forth by the commission. Not complying with an escrow disbursement order could jeopardize the trust placed in the broker, resulting in financial consequences and possible legal action. Other options, such as being exempt from penalties or having the ability to appeal the decision, don't align with the enforcement capabilities the commission holds regarding breaches of fiduciary duties. Therefore, it's crucial for brokers to understand the importance of compliance with these orders to maintain their professional standing and avoid civil liabilities.