Trust Funds
Under California law, a real estate broker must deposit trust funds received into the trust account no later than:
AImmediately upon receipt
BThe next business day following receipt
C3 business days following receipt✓ Correct
D7 calendar days following receipt
Explanation
California Business and Professions Code Section 10145 requires brokers to deposit trust funds into a trust account within three business days of receipt. However, if the broker receives a check and is instructed to hold it uncashed pending acceptance of an offer, different rules apply.
Related California Trust Funds Questions
- A broker's trust fund records must be retained for how long after the transaction closes or the funds are disbursed?
- Interest earned on a real estate trust account in California generally:
- A 'shortage' in a broker's trust account — where the trust liability exceeds the bank balance — is most likely evidence of:
- What are 'trust funds' in California real estate practice?
- What is the maximum amount a broker may keep in their trust account from personal funds?
- California regulations require that a broker maintain a 'trust fund bank account record' (journal). What does this record show?
- What constitutes 'misappropriation' of trust funds?
- A real estate broker's trust account must be maintained at:
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