A property manager collects security deposits from tenants. Under California law, security deposits:
Why Are trust funds and must be held in a trust account unless the owner authorizes otherwise in writing Is Correct
Answer B: Are trust funds and must be held in a trust account unless the owner authorizes otherwise in writing
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.
People Also Study
Related California Questions
- A property manager receives a security deposit from a tenant. Under California Civil Code, residential security deposits may NOT exceed:Trust Funds
- A property manager who collects rents, signs leases, and manages maintenance on behalf of an owner must hold which California license?Property Management
- A property manager collects rent on behalf of an owner. Under California law, within how many days after the close of the month must the manager provide the owner with an itemized accounting of funds received and disbursed?Property Management
- Can a property management broker combine the security deposits for multiple tenants in a single trust account?Trust Funds
- In California, a property manager who collects rents and security deposits on behalf of an owner must:Property Management
- Under California law, a real estate broker who manages property for clients must maintain a separate trust account for client funds. Mixing client funds with the broker's personal funds is called:Agency
- Under California law, the maximum amount a broker may keep of their own funds in a trust account (to cover bank service charges) is:DRE & Licensing
- 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 neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
State-Specific Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →