Trust Funds
A salesperson receives an earnest money check from a buyer. What must the salesperson do with the check?
ADeposit it into the salesperson's personal account until the transaction closes
BPromptly deliver it to the salesperson's broker✓ Correct
CForward it directly to the seller
DHold it for 5 business days before delivering it
Explanation
Salespersons cannot maintain trust accounts — only brokers can. A salesperson who receives trust funds must promptly deliver them to the employing broker, who is then responsible for proper handling and deposit.
Related California Trust Funds Questions
- When escrow is used in a California real estate transaction, trust funds are typically held by:
- How often must a broker reconcile the trust fund bank account balance with the total of all client ledger balances?
- Which of the following records is a broker required to maintain for the trust fund account?
- Under California law, a DRE auditor examining a broker's trust fund records has the right to inspect those records:
- If a broker discovers a shortage in the trust account caused by a bank error, what is the BEST course of action?
- A broker must deposit a buyer's earnest money deposit into a trust account within:
- A broker is required to maintain a columnar record (trust fund ledger) for the trust account. The purpose of this record is to:
- Which California law specifically governs a real estate broker's obligations with respect to trust funds?
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