A California broker receives several earnest money deposits from different transactions on the same day. Under Commissioner's Regulation 2832, what is the default deadline for depositing these trust funds into the broker's trust account?
Correct Answer
C) The next business day following receipt, unless the parties have written instructions directing the funds to a neutral escrow depository
Under Commissioner's Regulation 2832, trust funds received by a broker must be deposited into the broker's trust account by the next business day following receipt. The 3-business-day rule is a separate provision that applies only when the funds are to be placed into a neutral escrow depository rather than the broker's own trust account, and only when there are written instructions from the parties authorizing that arrangement. Regardless of how many deposits are received on the same day, each must be individually documented in the columnar record and the appropriate beneficiary ledger to maintain accurate accounting within the pooled account.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
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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?
- → A California buyer's agent conducts a visual inspection of a property and observes extensive, recently applied caulking around all window frames and along the base of the exterior walls. What is the buyer's agent's most appropriate next step?
- → A California buyer's agent conducts a visual inspection and notices that the property's water heater is not strapped to the wall as required by California law for seismic safety. Under California Health and Safety Code §19211, water heaters must be braced. What should the buyer's agent do?
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