Trust Funds
A broker's trust fund account must be maintained at:
AAny federally chartered bank outside California
BAn FDIC-insured bank or savings institution in California✓ Correct
CThe broker's personal bank account for convenience
DA DRE-designated state repository
Explanation
California law requires broker trust fund accounts to be maintained in a bank or savings institution in California that is insured by the FDIC or NCUA, ensuring protection of client funds.
Related California Trust Funds Questions
- Can a broker keep their own money in a client trust account?
- What are 'trust funds' in California real estate practice?
- A broker who holds a disputed earnest money deposit and cannot get agreement from the parties may:
- A buyer and seller have a dispute over who is entitled to an earnest money deposit after a transaction falls through. The broker should:
- Under California law, a real estate broker must deposit trust funds received into the trust account no later than:
- What is a 'neutral escrow' and when is it used for trust funds?
- A broker receives a $10,000 earnest money deposit in cash from a buyer. The broker must:
- A broker is required to maintain a columnar record (trust fund ledger) for the trust account. The purpose of this record is to:
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