A DRE compliance auditor is reviewing a broker's trust account practices. Which of the following actions would the auditor identify as a violation of California trust account regulations?
Correct Answer
C) The broker deposits trust funds received on a Friday into the trust account on the following Wednesday
Cal. Bus. & Prof. Code §10145 and Commissioner's Regulation 2832 require that trust funds be deposited into the broker's trust account no later than three business days following receipt. A Friday receipt creates a deadline of Wednesday at the latest (Saturday, Monday, Tuesday counting as business days one through three). Depositing on Wednesday — the fourth calendar day but potentially the third business day — is on the edge, but if Saturday is not counted as a business day, Wednesday would be the third business day and compliant. However, if the question intends a plain calendar reading where the deposit occurs on the fourth day after a Friday receipt (i.e., the following Wednesday being five days later), this would exceed the three-business-day window and constitute a violation. Brokers must track receipt dates carefully to avoid late-deposit violations.
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Related Topics & Key Terms
Key Terms:
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A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
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