A California salesperson accepts a buyer's earnest money deposit check with the purchase offer. Under California law, what must the salesperson do with the check?
Correct Answer
A) Immediately deliver the check to the broker, or as the broker directs, to escrow
Business and Professions Code Section 10145(c) provides that a salesperson who accepts trust funds on behalf of the broker shall immediately deliver the funds to the broker or, if so directed by the broker, shall deliver them into the custody of the broker's principal or a neutral escrow depository, or deposit them into the broker's trust fund account. The salesperson's obligation is immediate delivery; the three-business-day deadline in Commissioner's Regulation 2832 governs when the broker must place trust funds in escrow, a trust account, or the hands of the principal. Trust accounts are maintained by brokers, not by salespersons, so a salesperson never holds deposit funds in their own name or account.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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