Trust Funds
A broker's trust fund account must be reconciled:
AAnnually
BMonthly✓ Correct
CWeekly
DOnly when audited by the DRE
Explanation
California law requires brokers to reconcile their trust fund accounts monthly — comparing the bank statement balance with the trust fund liability (what is owed to clients).
Related California Trust Funds Questions
- The illegal use of client trust funds for the broker's personal benefit is called:
- A property manager receives a security deposit from a tenant. Under California Civil Code, residential security deposits may NOT exceed:
- A property manager collects security deposits from tenants. Under California law, security deposits:
- A broker who maintains a property management business must:
- Can a property management broker combine the security deposits for multiple tenants in a single trust account?
- A broker must deposit a buyer's earnest money deposit into a trust account within:
- A buyer and seller have a dispute over who is entitled to an earnest money deposit after a transaction falls through. The broker should:
- Which statement about a broker's trust account is TRUE?
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