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
A) Within three business days of receipt, whether the funds go to the owner, a neutral escrow depository, or a trust account
Commissioner's Regulation 2832(a) gives a broker one deadline with three permitted destinations: trust funds received must be placed into the hands of the owner of the funds, into a neutral escrow depository, or into the broker's trust account not later than three business days following receipt by the broker or the broker's salesperson. The same three-day limit applies whichever destination is used, so receiving several deposits on one day does not change the timing. Each deposit must still be entered separately in the columnar record under Regulation 2831 and posted to the beneficiary ledger under Regulation 2831.1 so the pooled account stays reconcilable.
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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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