DRE & LicensingIntermediateCalifornia Exam
When a real estate broker receives a deposit check from a buyer, California law requires the broker to place the funds in a trust account or deliver them to the escrow within:
A24 hours
B3 business daysCorrect
CThe next business day
DNo later than the close of escrow
Why 3 business days Is Correct
Answer B: 3 business days
California Business and Professions Code Section 10145 requires that funds received by a broker in connection with a real estate transaction be deposited into a trust account or delivered to a neutral escrow depository within 3 business days of receipt. Commingling with the broker's personal funds is prohibited.
Key DRE & Licensing Terms in This Question
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Math Concepts
State-Specific Concepts
Trust Account Rules
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