Trust Funds
Under California law, when must a broker deposit funds received from clients into the broker's trust account?
AWithin 10 business days of receipt
BWithin 3 business days of receipt, unless the buyer and seller have given written instructions otherwise✓ Correct
CWithin 24 hours of receipt
DImmediately upon receipt — the same day
Explanation
California Business and Professions Code Section 10145 requires brokers to deposit client funds into a trust account within 3 business days of receipt (or sooner if instructed). An exception applies if the parties provide written instructions to hold the check uncashed pending acceptance.
Related California Trust Funds Questions
- Which of the following is NOT a permissible disbursement from a broker's trust account?
- California regulations require that a broker maintain a 'trust fund bank account record' (journal). What does this record show?
- What is a 'neutral escrow' and when is it used for trust funds?
- A broker's trust fund account must be maintained at:
- The DRE has the authority to audit a broker's trust account records:
- Which of the following is NOT a permissible trust account?
- A broker is required to maintain a columnar record (trust fund ledger) for the trust account. The purpose of this record is to:
- A broker's trust fund records must be retained for how long after the transaction closes or the funds are disbursed?
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