A California broker maintains a trust account for client deposits. Under DRE regulations, the broker may keep a maximum of how much of the broker's own funds in the trust account to cover bank charges?
Correct Answer
C) $200
Under California Commissioner's Regulation 2832.1, a broker may maintain up to $200 of their own personal funds in the trust account to cover bank service charges and fees. Any amount exceeding $200 of the broker's personal funds constitutes commingling, which is a violation of trust fund regulations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
More Laws Of Agency Fiduciary Duties Questions
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