Trust Funds
A broker must maintain a separate trust account ledger for each:
AProperty type
BBeneficiary (client)✓ Correct
CTransaction date
DProperty location
Explanation
California regulations require brokers to maintain separate columnar records (ledgers) for each beneficiary (client) whose funds are held in the trust account. This allows the broker to track exactly how much is owed to each client at all times.
Related California Trust Funds Questions
- A 'shortage' in a broker's trust account — where the trust liability exceeds the bank balance — is most likely evidence of:
- When escrow is used in a California real estate transaction, trust funds are typically held by:
- A broker receives a $5,000 earnest money deposit on a Friday at 5 PM. The three-business-day deposit deadline would be:
- When a real estate transaction closes, how should trust funds (e.g., the buyer's deposit) be handled?
- A broker who maintains a property management business must:
- Under California law, a real estate broker must deposit trust funds received into the trust account no later than:
- What is 'conversion' in the context of trust funds?
- Interest earned on funds held in a broker's trust account generally belongs to:
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