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 — six calendar 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 deposit them into a trust account within 3 business days of the broker's receipt. Receiving funds on Monday and depositing the following Monday exceeds this deadline regardless of the dollar amount involved. This timing violation may result in DRE disciplinary action including fines, suspension, or license revocation.
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- → A property in a California Mello-Roos district has a base Proposition 13 property tax of 1% on its assessed value of $600,000, plus a Mello-Roos special tax of $3,200 per year. What is the total annual property tax bill for this property?
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