Trust Funds
Which California government agency has primary jurisdiction over the investigation of trust fund violations by real estate licensees?
AThe California Department of Financial Protection and Innovation (DFPI)
BThe California Bureau of Real Estate / Department of Real Estate (DRE)✓ Correct
CThe California Attorney General's Office
DThe Federal Bureau of Investigation (FBI)
Explanation
The California Department of Real Estate (DRE) has primary authority to investigate trust fund violations by licensed brokers and salespersons. The DRE can audit records, suspend or revoke licenses, and refer matters to the district attorney for criminal prosecution. Serious cases may involve multiple agencies.
Related California Trust Funds Questions
- A broker receives a $10,000 earnest money deposit in cash from a buyer. The broker must:
- What records must a California broker maintain for their trust account?
- If a buyer's offer is rejected and they had deposited earnest money, the broker must:
- A broker's trust fund account must be reconciled:
- A DRE audit of a broker's trust account reveals that the balance of individual client ledgers is less than the total bank balance. This condition is called:
- What is 'conversion' in the context 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:
- The commingling of trust funds occurs when a broker:
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