A salesperson receives a $2,000 cash earnest money deposit from a buyer during a property showing. Under California trust fund rules, what is the salesperson's required next step?
Correct Answer
A) Immediately deliver the cash to the broker, or as the broker directs, and give the buyer a receipt
Business and Professions Code §10145(c) requires a salesperson who accepts trust funds on the broker's behalf to deliver them to the broker immediately, or, if the broker so directs, to the broker's principal, a neutral escrow depository, or the broker's trust fund account. The choice among those destinations belongs to the broker, not to the salesperson. Commissioner's Regulation 2832 then caps the entire journey at three business days from receipt, so "immediately" is the instruction and three business days is the outside limit. Giving the buyer a written receipt documents the amount of cash and the date the clock started.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
Death on property disclosure addresses whether sellers must inform buyers about deaths that occurred on the property, including natural deaths, suicides, and murders. Requirements vary significantly by state.
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.
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