A California real estate broker is holding a buyer's earnest money deposit. The broker must deposit the funds into the broker's trust account. Under California DRE regulations, by when must the broker deposit the funds?
Correct Answer
C) Within 3 business days of receipt
Under California Business and Professions Code §10145 and DRE Commissioner's Regulations §2832, a real estate broker who receives trust funds (including earnest money deposits) on behalf of a principal must deposit those funds into a trust account within 3 business days of receipt. This requirement applies when funds are received in connection with a real estate transaction.
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