Trust Funds
A broker who is also a property manager collects rent on behalf of an owner. These rental proceeds are:
AIncome to the broker, deposited in the broker's business account
BTrust funds that must be kept separate from the broker's own money✓ Correct
COwner funds that may be commingled with other property management revenue
DNot subject to trust fund requirements since property management is exempt
Explanation
Rental proceeds collected by a property manager on behalf of an owner are trust funds and must be maintained in a separate trust fund account. They cannot be commingled with the broker's business or personal funds.
Related California Trust Funds Questions
- A broker receives a $10,000 earnest money deposit in cash from a buyer. The broker must:
- Commingling in real estate refers to:
- Under California law, a real estate broker must deposit trust funds received into the trust account no later than:
- Which of the following is NOT a permissible disbursement from a broker's trust account?
- If a buyer's check for earnest money is made payable to the listing broker, and the buyer instructs the broker to hold the check uncashed until the offer is accepted, the broker should:
- For how long must a California broker maintain trust fund records?
- 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:
- Which of the following is considered 'commingling' of trust funds?
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