Which following activity is not prohibited?

Which following activity is not prohibited?

• A. Disburse in accordance with C.R.S.38-35-125
• B. Disburse without any guidelines
• C. Charge undisclosed fees
• D. Accept gifts from clients

Answer: (A)

In Colorado title practice, handling settlement funds must follow the statute that governs how disbursements are made. Disbursing in accordance with C.R.S. 38-35-125 is allowed because it follows the mandated process, ensuring funds are paid to the rightful parties in the correct order with proper documentation. The other options violate rules: disbursing without guidelines risks misappropriation and noncompliance; charging undisclosed fees breaches transparency and legal obligations; accepting gifts from clients creates conflicts of interest and is generally prohibited. So the only non-prohibited action is following the statute's disbursement requirements.

In Colorado title practice, handling settlement funds must follow the statute that governs how disbursements are made. Disbursing in accordance with C.R.S. 38-35-125 is allowed because it follows the mandated process, ensuring funds are paid to the rightful parties in the correct order with proper documentation. The other options violate rules: disbursing without guidelines risks misappropriation and noncompliance; charging undisclosed fees breaches transparency and legal obligations; accepting gifts from clients creates conflicts of interest and is generally prohibited. So the only non-prohibited action is following the statute's disbursement requirements.