Practice & ContractsQuestion 110 of 120
A broker who holds client trust funds must generally deposit them into a neutral escrow depository or a trust account no later than:
a.Within 30 days
b.Three business days after receipt
c.At close of escrow
d.Only when the deal falls through
Explanation
California requires a broker to place trust funds into a neutral escrow, a trust account, or into the principal's hands not later than three business days after receipt. Prompt handling prevents commingling and protects clients. The DRE audits trust fund records closely.
Law Reference: CA Business & Professions CodePractice all 120 questions free — no signup required.
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