Trust Funds
If a buyer instructs the broker to hold their uncashed check until offer acceptance, the broker should:
ACash the check immediately
BHold the check uncashed as instructed and disclose this to the seller✓ Correct
CDeposit it into the trust account anyway
DReturn the check to the buyer
Explanation
A broker may hold an uncashed check as directed by the buyer, but must disclose this arrangement to the seller before or when presenting the offer. If the seller objects to this arrangement, the check must be deposited promptly.
Related California Trust Funds Questions
- Which of the following is considered 'commingling' of trust funds?
- A broker who violates trust fund regulations is subject to which of the following penalties?
- If a buyer's offer is rejected and they had deposited earnest money, the broker must:
- What must a broker do when they receive a buyer's earnest money deposit check with instructions to hold it uncashed pending acceptance?
- Interest earned on funds held in a broker's trust account generally belongs to:
- A broker receives a $10,000 earnest money deposit in cash from a buyer. The broker must:
- Which of the following records is a broker required to maintain for the trust fund account?
- 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:
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