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 the following Thursday
Commissioner's Regulation 2832 requires trust funds to reach the owner of the funds, a neutral escrow depository, or the broker's trust account no later than three business days following receipt. Saturday and Sunday are not business days, so funds taken in on a Friday must be deposited by the following Wednesday, and a Thursday deposit is one business day late. Each of the other practices is permitted or required: Regulation 2831.1 requires a separate record for each beneficiary, Regulation 2835 allows up to $200 of broker funds for bank service charges, and Regulation 2834 lets a broker authorize a salesperson licensed to the broker to sign on the account while the broker stays responsible.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Radon disclosure involves informing buyers about the presence or potential presence of radon gas in a property. Radon is a naturally occurring radioactive gas that can accumulate in buildings and is the second leading cause of lung cancer.
More Practice Of Real Estate Disclosures Questions
Under California law, a real estate agent owes a duty of honest and fair dealing to all parties in a transaction, not only to the agent's own client. Which provision most directly establishes this duty?
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- → At a DRE administrative disciplinary hearing in California, what standard of proof must the Department meet to sustain a finding against a licensee?
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