Trust Funds
A salesperson collects an earnest money deposit from a buyer. What must the salesperson do with these funds?
ADeposit them directly into the salesperson's personal account until escrow opens
BDeliver them promptly to the employing broker✓ Correct
CForward them to the seller within 24 hours
DHold them personally until all contingencies are removed
Explanation
A salesperson has no authority to maintain a trust account. All trust funds received by a salesperson must be promptly delivered to their employing broker, who is then responsible for proper handling and deposit.
Related California Trust Funds Questions
- Which of the following is considered a trust fund under California law?
- A broker's trust fund account must be reconciled:
- Commingling in real estate refers to:
- A real estate broker's trust account must be maintained at:
- A broker receives an earnest money check made out to the seller. The buyer instructs the broker to hold the check uncashed until offer acceptance. The broker MUST:
- A broker must deposit a buyer's earnest money deposit into a trust account within:
- Which of the following records is a broker required to maintain for the trust fund account?
- A broker who holds a disputed earnest money deposit and cannot get agreement from the parties may:
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →