A broker receives a $15,000 earnest money check directly from a buyer on a Monday. The broker deposits the funds into the trust account on the following Monday, seven days later. Under Commissioner's Regulation 2832, how should the DRE auditor classify this?
Correct Answer
C) A violation of the deposit timing requirement, which may subject the broker to DRE disciplinary action
Commissioner's Regulation 2832 requires a broker who receives trust funds to place them in a trust account, into a neutral escrow, or in the hands of the intended recipient not later than the third business day after receipt. Funds received on Monday and deposited the following Monday are five business days late regardless of the amount involved. A deposit that misses the deadline is a violation that may draw DRE discipline, including a fine, suspension, or revocation.
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