A broker who violates trust fund regulations is subject to which of the following penalties?
Why DRE license suspension or revocation, civil liability, and possible criminal charges Is Correct
Answer B: DRE license suspension or revocation, civil liability, and possible criminal charges
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.
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Related California Questions
- California regulations require that a broker maintain a 'trust fund bank account record' (journal). What does this record show?Trust Funds
- Which California government agency has primary jurisdiction over the investigation of trust fund violations by real estate licensees?Trust Funds
- A broker's trust fund account must be reconciled:Trust 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:Trust Funds
Key Terms to Know
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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.
State-Specific Concepts
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