Trust Funds
A real estate broker's trust account must be maintained at:
AAny financial institution approved by the DRE
BA federally insured financial institution in California✓ Correct
CThe state treasurer's office
DAny bank authorized to do business in any U.S. state
Explanation
California law requires that trust accounts be maintained at a bank, savings association, credit union, or other financial institution authorized to do business in California with accounts insured by the FDIC or NCUA. The institution must be in California.
Related California Trust Funds Questions
- Interest earned on a real estate trust account in California generally:
- Under California law, trust fund records must be retained for a minimum of:
- A broker receives a $10,000 earnest money deposit in cash from a buyer. The broker must:
- For how long must a California broker maintain trust fund records?
- The DRE has the authority to audit a broker's trust account records:
- A broker who maintains a property management business must:
- When escrow is used in a California real estate transaction, trust funds are typically held by:
- What constitutes 'misappropriation' of trust funds?
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