Check Your Understanding Answers
- What are trust funds?
Trust funds are money or other things of value that are received by the broker on the part of another person.
- Within what timeframe is a broker required to deposit a buyer’s money deposit in the appropriate account or provide it to the principal?
3 business days following receipt of the funds by the broker or the broker’s salesperson, unless the money is in the form of a check that is to be held uncashed until the offer has been accepted
- Define commingling.
Commingling is the practice of mixing a client's money with the agent's personal funds and it is illegal.
- How long must brokers keep all trust account records?
Brokers must keep all records chronologically for three years from the date of the conclusion of a transaction or listing if the transaction does not close.
