Trust Funds
California regulations require that a broker maintain a 'trust fund bank account record' (journal). What does this record show?
AThe details of each transaction including buyer and seller names and commission earned
BA chronological record of all deposits and withdrawals from the trust account✓ Correct
CThe DRE license numbers of all parties to each transaction
DThe escrow company used for each closed transaction
Explanation
The trust fund bank account record (journal) is a chronological log of all trust fund activity — every deposit and disbursement affecting the trust account, regardless of which client the funds belong to. It allows a reconciliation of the account balance against individual beneficiary ledgers.
Related California Trust Funds Questions
- Under California law, a real estate broker must deposit trust funds received into the trust account no later than:
- When escrow is used in a California real estate transaction, trust funds are typically held by:
- A salesperson who works for Broker A receives an earnest money deposit. Without telling Broker A, the salesperson deposits it into the salesperson's own personal account. This is:
- What is 'commingling' of trust funds?
- What is a 'columnar cash record' (general journal) in trust fund accounting?
- A property manager collects security deposits from tenants. Under California law, security deposits:
- 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:
- Commingling in real estate refers to:
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