Trust Funds
What records must a California broker maintain for their trust account?
ANo records required; bank statements are sufficient
BA separate journal for each beneficiary and a columnar cash book, kept for 3 years, subject to DRE audit✓ Correct
COnly annual summaries submitted to the DRE
DRecords are only required if the broker has more than 10 active clients
Explanation
California regulations require brokers to maintain detailed trust fund records including a journal (chronological record of all receipts and disbursements) and a separate ledger for each client/beneficiary. These records must be maintained for 3 years and are subject to DRE audit.
Related California Trust Funds Questions
- If a buyer's offer is rejected and they had deposited earnest money, the broker must:
- Which of the following is considered 'commingling' of trust funds?
- What is 'commingling' of trust funds?
- A broker is required to maintain a columnar record (trust fund ledger) for the trust account. The purpose of this record is to:
- A salesperson receives an earnest money check from a buyer. What must the salesperson do with the check?
- A broker receives a commission payment directly from the seller at closing. This money should be deposited into:
- Under California law, trust fund records must be retained for a minimum of:
- 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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