Trust Funds
Which of the following is TRUE about salesperson trust fund accounts?
AExperienced salespersons may maintain their own trust account
BSalespersons are not permitted to maintain a trust fund account✓ Correct
CA salesperson may have a trust account if the employing broker approves
DSalespersons in California corporations may have trust accounts
Explanation
Under California law, only licensed brokers may maintain trust fund accounts. Salespersons are prohibited from maintaining their own trust accounts; all trust funds must be handled through the employing broker.
Related California Trust Funds Questions
- Under California law, trust fund records must be retained for a minimum of:
- If a buyer instructs the broker to hold their uncashed check until offer acceptance, the broker should:
- Interest earned on a real estate trust account in California generally:
- A DRE audit of a broker's trust account reveals that the balance of individual client ledgers is less than the total bank balance. This condition is called:
- A broker must maintain a separate trust account ledger for each:
- A broker's trust account shortage (the bank balance is less than the sum of all beneficiary ledger balances) most likely indicates:
- When may a broker withdraw funds from their trust account?
- A broker who is also a property manager collects rent on behalf of an owner. These rental proceeds are:
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