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Real Estate Salesperson Exam — National Portion

Trust funds (CA): practice questions

Our Real Estate (National) bank has 11 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · California

How long must a California broker keep listings, deposit receipts, cancelled checks and trust records?

  1. Forever
  2. Ten years after closing
  3. Three years
  4. One year
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C. Three years — This is required by Business and Professions Code §10148.

Question 2 · California

How long may a California broker's earned commissions stay in the trust account without commingling?

  1. Indefinitely
  2. No more than 25 days
  3. Up to one year
  4. No more than 1 business day
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B. No more than 25 days — Withdraw earned fees promptly.

Question 3 · California

What does a trust account balance greater than total liabilities to beneficiaries (an overage) suggest?

  1. Possible commingling
  2. Nothing; overages are always fine
  3. Good management
  4. A shortage
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A. Possible commingling — Unexplained overages must be reconciled monthly.

Question 4 · California

Where must a California broker's trust account be kept?

  1. In cash at the office
  2. In a personal savings account
  3. With a bank or recognized depository in California, in the broker's name as trustee
  4. In any bank, including foreign banks, in the salesperson's own name as the account holder
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C. With a bank or recognized depository in California, in the broker's name as trustee — When acting as escrow holder, the broker must deposit by the next business day.

Question 5 · California

What must a California salesperson do with trust funds received on the broker's behalf?

  1. Deliver them immediately to the broker or deposit them as the broker directs
  2. Give them to the seller
  3. Keep them until closing
  4. Deposit them in a personal account
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A. Deliver them immediately to the broker or deposit them as the broker directs — The three-business-day clock runs from the salesperson's receipt.

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