A broker receives a $5,000 earnest money deposit on a Friday at 5 PM. The three-business-day deposit deadline would be:
Why The following Wednesday Is Correct
Answer C: The following Wednesday
Exam Tip: Trust Funds
Trust fund questions test the rules for handling client money. Know the deadlines for depositing trust funds, what constitutes commingling vs. conversion, and the penalties for violations.
Key Trust Funds Terms in This Question
People Also Study
Related California Questions
- A broker receives a $10,000 earnest money deposit in cash from a buyer. The broker must:Trust Funds
- A salesperson who works for Broker A receives an earnest money deposit. Without telling Broker A, the salesperson deposits it into the salesperson's own personal account. This is:Trust Funds
- A broker receives a check as earnest money. Under California law, the broker must deposit it into the trust account within:Trust Funds
- A broker must deposit a buyer's earnest money deposit into a trust account within:Trust Funds
- Real estate trust funds must be deposited into the trust account within how many business days of receipt?DRE & Licensing
- An earnest money deposit in a purchase contract is typically held by:Contracts
- What happens to the buyer's earnest money deposit if the buyer backs out of a purchase contract after removing all contingencies in California?Contracts
- What is an 'earnest money deposit' in a real estate transaction?Contracts
Key Terms to Know
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Math Concepts
State-Specific Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →