Trust Funds
A broker may maintain a personal (broker's) funds balance in the trust account of up to how much to cover bank service charges?
A$0 — no personal funds are ever allowed
B$200
CA reasonable amount, not to exceed $200, to cover bank charges✓ Correct
D$1,000
Explanation
California regulations allow a broker to keep a small amount of their own funds (generally not to exceed $200) in the trust account solely to cover bank service charges. Any more is considered commingling.
Related California Trust Funds Questions
- What are 'trust funds' in California real estate practice?
- Under California law, a real estate broker must deposit trust funds received into the trust account no later than:
- A real estate broker's trust account must be maintained at:
- A broker must deposit a buyer's earnest money deposit into a trust account within:
- A salesperson receives an earnest money check from a buyer. What must the salesperson do with the check?
- If a buyer's offer is rejected and they had deposited earnest money, the broker must:
- Commingling in real estate refers to:
- Under California law, a real estate broker must deposit trust funds received into a neutral escrow or into the broker's trust fund account no later than:
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