Trust Funds
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:
AThe next business day
BThree business days after receipt✓ Correct
CThe close of escrow
DWithin 24 hours of receipt
Explanation
California Business and Professions Code §10145 requires that trust funds (such as earnest money deposits) be deposited into a trust fund account or neutral escrow within three business days of receipt by the broker.
Related California Trust Funds Questions
- A broker's trust fund account must be reconciled:
- A salesperson who works for Broker A receives an earnest money deposit. Without telling Broker A, the salesperson deposits it into the salesperson's own personal account. This is:
- A broker receives a commission payment directly from the seller at closing. This money should be deposited into:
- For how long must a California broker maintain trust fund records?
- What is 'commingling' of trust funds?
- When may a broker withdraw funds from their trust account?
- A broker receives a $10,000 earnest money deposit in cash from a buyer. The broker must:
- A broker's trust account shortage (the bank balance is less than the sum of all beneficiary ledger balances) most likely indicates:
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