Trust Funds
What is the maximum amount a broker may keep in their trust account from personal funds?
A$200 to cover bank charges; more than this constitutes commingling✓ Correct
BNo personal funds may ever be in a trust account
C$1,000 at any time
D$500 to cover bank service charges
Explanation
California regulations allow a broker to keep a limited amount of personal funds (up to $200) in the trust account to cover service charges and fees. Any amount exceeding this is considered commingling. The $200 rule prevents the trust account from going negative due to bank fees.
Related California Trust Funds Questions
- Which of the following is NOT a permissible disbursement from a broker's trust account?
- A salesperson receives an earnest money check from a buyer. What must the salesperson do with the check?
- What is 'conversion' in the context of trust funds?
- Which of the following records is a broker required to maintain for the trust fund account?
- Can a property management broker combine the security deposits for multiple tenants in a single trust account?
- A broker places a client's $50,000 earnest money deposit into a money market account earning interest. The broker does NOT inform the client or credit the interest to the client. This is:
- Commingling in real estate refers to:
- What must a broker do when they receive a buyer's earnest money deposit check with instructions to hold it uncashed pending acceptance?
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