Marcus, a salesperson in Long Beach, receives a signed offer from his buyer client. Under DRE regulations, within how many business days must Marcus deposit the buyer's earnest money check into the broker's trust account or into escrow?
Correct Answer
C) 3 business days
Under DRE regulations (California Business and Professions Code §10145 and Commissioner's Regulation 2832), trust funds received by a broker or salesperson must be deposited into the broker's trust account or into a neutral escrow depository within 3 business days of receipt.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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