Trust Funds
A broker receives a check as earnest money. Under California law, the broker must deposit it into the trust account within:
A24 hours of receipt
B3 business days of receipt or acceptance of the offer, whichever is later✓ Correct
C5 calendar days
DThe same business day
Explanation
California regulations require a broker to deposit trust funds into a trust account within 3 business days of receipt, or within 3 business days after acceptance of the offer — whichever is later.
Related California Trust Funds Questions
- 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:
- Under California law, when must a broker deposit funds received from clients into the broker's trust account?
- A California real estate broker's trust account must be maintained at:
- When may a broker withdraw funds from their trust account?
- What constitutes 'misappropriation' of trust funds?
- What is the maximum amount a broker may keep in their trust account from personal funds?
- 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:
- A broker's trust account shortage (the bank balance is less than the sum of all beneficiary ledger balances) most likely indicates:
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