Trust Funds
When may a broker withdraw funds from their trust account?
AAt any time the broker deems appropriate
BOnly when authorized by the parties (buyer and seller) pursuant to the contract terms, upon cancellation instructions, or upon closing of the transaction✓ Correct
CAfter 30 days, if unclaimed
DOnly with DRE approval
Explanation
Funds may only be disbursed from a trust account pursuant to the instructions of the parties who deposited the funds or pursuant to contract terms (e.g., at close of escrow). Unauthorized disbursement is conversion and a violation of the Real Estate Law.
Related California Trust Funds Questions
- Can a broker keep their own money in a client trust account?
- Interest earned on a real estate trust account in California generally:
- A broker may keep a maximum of how much of the broker's own funds in the trust account without it being considered commingling?
- What is 'conversion' of trust funds?
- What are 'trust funds' in California real estate practice?
- A broker receives a $10,000 earnest money deposit in cash from a buyer. The broker must:
- Which of the following is TRUE about salesperson trust fund accounts?
- California regulations require that a broker maintain a 'trust fund bank account record' (journal). What does this record show?
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