Under California Business and Professions Code §10145 and Commissioner's Regulation 2832, by when must a broker deposit a buyer's personal check received as an earnest money deposit into the broker's trust account?
Correct Answer
A) Within three business days after receipt from the buyer or the buyer's agent
Under California Business and Professions Code §10145 and Commissioner's Regulation 2832, a broker must deposit trust funds received in the form of a check into a trust account within three business days of receipt from the principal or the principal's agent. This three-business-day rule applies specifically to checks and other non-cash instruments.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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