Trust Funds
A broker's trust account cannot be an interest-bearing account unless:
AThe balance exceeds $10,000
BAll parties whose funds are held provide written authorization✓ Correct
CThe broker has been licensed for more than 5 years
DIt is approved by the DRE
Explanation
A broker's trust account may only be interest-bearing if all parties whose funds are deposited have provided written authorization specifying who receives the interest. Without consent, trust accounts must be non-interest-bearing.
Related California Trust Funds Questions
- Under California law, a real estate broker must deposit trust funds received into the trust account no later than:
- A broker's trust fund account must be maintained at:
- A property manager receives a security deposit from a tenant. Under California Civil Code, residential security deposits may NOT exceed:
- A broker who violates trust fund regulations is subject to which of the following penalties?
- Which of the following records is a broker required to maintain for the trust fund account?
- Which of the following is considered 'commingling' of trust funds?
- What constitutes 'misappropriation' of trust funds?
- What is a 'neutral escrow' and when is it used for trust funds?
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