Under Commissioner's Regulation 2831.2, what three records must a California broker compare during the required monthly trust account reconciliation?
Correct Answer
B) The bank statement balance, the broker's columnar record balance, and the total of all individual beneficiary ledger balances
Commissioner's Regulation 2831.2 requires a three-way reconciliation each month: (1) the bank statement balance, (2) the broker's columnar (trust account journal) record balance, and (3) the sum of all individual beneficiary ledger balances. All three figures must agree. Any discrepancy must be identified and resolved immediately. This three-way comparison ensures that pooled trust funds are fully accounted for at both the aggregate and individual client level.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.
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- → A California salesperson's personal real estate blog states, 'I closed 50 transactions last year!' The actual number was 32. A competing agent reports this to the DRE. What is the most likely regulatory outcome?
- → A seller is selling a condominium in a California common interest development (CID). In addition to the TDS, which disclosure package is the seller required to provide under California Civil Code §4525?
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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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