Which of the following is considered a trust fund under California law?
Why An earnest money deposit received from a buyer Is Correct
Answer B: An earnest money deposit received from a buyer
Exam Tip: Trust Funds
Trust fund questions test the rules for handling client money. Know the deadlines for depositing trust funds, what constitutes commingling vs. conversion, and the penalties for violations.
Key Trust Funds Terms in This Question
People Also Study
Related California Questions
- 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:Trust Funds
- Under California law, a real estate broker must deposit trust funds received into the trust account no later than:Trust Funds
- Under California law, when must a broker deposit funds received from clients into the broker's trust account?Trust Funds
- A broker receives a check as earnest money. Under California law, the broker must deposit it into the trust account within:Trust Funds
- Under California law, a real estate broker who manages property for clients must maintain a separate trust account for client funds. Mixing client funds with the broker's personal funds is called:Agency
- When a real estate broker receives a deposit check from a buyer, California law requires the broker to place the funds in a trust account or deliver them to the escrow within:DRE & Licensing
- A property manager collects rent on behalf of an owner. Under California law, within how many days after the close of the month must the manager provide the owner with an itemized accounting of funds received and disbursed?Property Management
- What happens to the buyer's earnest money deposit if the buyer backs out of a purchase contract after removing all contingencies in California?Contracts
Key Terms to Know
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
State-Specific Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →