Trust Funds
What are 'trust funds' in California real estate practice?
AFunds belonging to the broker that are invested for clients
BMoney or things of value received by a licensee on behalf of others that do not belong to the licensee and must be kept separate from the broker's personal funds✓ Correct
CFunds held in a living trust by a property owner
DEscrow fees collected by title companies
Explanation
Trust funds are money (deposits, rents, proceeds) or things of value received by a real estate licensee on behalf of others (buyers, sellers, landlords, tenants). They must be held in a separate trust account and must not be commingled with the broker's personal or business funds.
Related California Trust Funds Questions
- A broker receives a commission payment directly from the seller at closing. This money should be deposited into:
- What is a 'columnar cash record' (general journal) in trust fund accounting?
- A broker who maintains a property management business must:
- 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:
- What constitutes 'misappropriation' of trust funds?
- Can a broker keep their own money in a client trust account?
- A salesperson receives an earnest money check from a buyer. What must the salesperson do with the check?
- Under California law, when must a broker deposit funds received from clients into the broker's trust account?
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