DRE & LicensingIntermediateCalifornia Exam
Real estate trust funds must be deposited into the trust account within how many business days of receipt?
A1 business day
B3 business daysCorrect
C5 business days
D7 business days
Why 3 business days Is Correct
Answer B: 3 business days
Under California law, a broker must deposit trust funds (such as earnest money deposits) into a trust account within 3 business days of receipt, unless the purchase agreement specifies otherwise.
Key DRE & Licensing Terms in This Question
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Math Concepts
State-Specific Concepts
Trust Account RulesEscrow Disputes
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