Trust Funds
A California real estate broker's trust account must be maintained at:
AAny licensed securities brokerage
BA bank or recognized depository institution in California, unless the client otherwise instructs in writing✓ Correct
CAn escrow company
DThe DRE's designated bank
Explanation
California law requires broker trust accounts to be maintained in a federally insured bank, savings and loan, or other recognized depository institution in California. The broker must notify the DRE of the trust account's location and account number.
Related California Trust Funds Questions
- What is a 'columnar cash record' (general journal) in trust fund accounting?
- Which of the following is considered 'commingling' of trust funds?
- Interest earned on funds held in a broker's trust account generally belongs to:
- Under California law, a DRE auditor examining a broker's trust fund records has the right to inspect those records:
- Conversion of trust funds occurs when a broker:
- Which California law specifically governs a real estate broker's obligations with respect to trust funds?
- Which statement about a broker's trust account is TRUE?
- How often must a broker reconcile the trust fund bank account balance with the total of all client ledger balances?
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