Trust Funds
A broker may keep a maximum of how much of the broker's own funds in the trust account without it being considered commingling?
ANothing — no broker funds may be in the trust account
BUp to $200 to cover bank service charges✓ Correct
CUp to $1,000 for operating expenses
DAny amount, as long as it is separately labeled
Explanation
California regulations allow a broker to keep a small amount of personal funds in the trust account (up to $200) solely to cover bank service charges. Any amount beyond what is necessary to cover charges would be considered commingling.
Related California Trust Funds Questions
- What are 'trust funds' in California real estate practice?
- A broker who is also a property manager collects rent on behalf of an owner. These rental proceeds are:
- The commingling of trust funds occurs when a broker:
- Conversion of trust funds occurs when a broker:
- How often must a broker reconcile the trust fund bank account balance with the total of all client ledger balances?
- A salesperson collects an earnest money deposit from a buyer. What must the salesperson do with these funds?
- A buyer's earnest money deposit is held in the broker's trust account. The sale falls through with no dispute. The broker may release the deposit:
- A broker who holds a disputed earnest money deposit and cannot get agreement from the parties may:
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