Under California law, can a real estate salesperson hold their own trust account?
Correct Answer
C) No, only licensed brokers can maintain trust accounts
Business and Professions Code section 10145 places trust fund responsibility on the broker: only a broker may maintain a trust account, and the broker answers for every dollar in it. Section 10145(c) requires a salesperson who accepts funds belonging to others to deliver them immediately to the employing broker, or, if the broker so directs, to the principal or into a neutral escrow depository. The broker then has until the third business day after receipt to place the funds in the trust account, into escrow, or in the hands of the intended recipient under Commissioner's Regulation 2832. Nothing in the licensing scheme lets a salesperson hold client money in an account of his own.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
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