Trust Funds
Which of the following is NOT a permissible trust account?
AA federally insured demand deposit account
BA broker's personal savings account✓ Correct
CA non-interest-bearing trust account at a California bank
DAn interest-bearing account with client consent
Explanation
Trust funds must be held in a separate, designated trust account at a federally insured financial institution. A broker's personal savings account is never permissible as a trust account — this would constitute commingling.
Related California Trust Funds Questions
- Can a property management broker combine the security deposits for multiple tenants in a single trust account?
- Commingling in real estate refers to:
- A broker must deposit a buyer's earnest money deposit into a trust account within:
- 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:
- 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:
- Under California law, a DRE auditor examining a broker's trust fund records has the right to inspect those records:
- What is the maximum amount a broker may keep in their trust account from personal funds?
- Which statement about a broker's trust account is TRUE?
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