3 DRE Approved Credit Hours - 45HoursOnline
3 DRE Approved Credit Hours
Updated: Feb. 18, 2022; Links: Feb. 24, 2022; Changed: Feb. 18, 2022
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DRE Disclaimer
This course is approved for continuing education credit by the California Department of Real Estate; however, this approval does not constitute an endorsement of the views or opinions which are expressed by the course sponsor, instructors, authors, or lecturers.
DRE Course and Instructor Evaluation
A course and instructor evaluation are available on the California Department of Real Estate (DRE) website at DRE.. Access this form by typing in "RE 318A" in the search box located in the upper right corner of the home page.
This is a "margin note" for images, links, and short comments.
PREFACE:
To save space we use the following abbreviations and terms:
BPC CAR? CC CR DRE NAR?
The Business and Professional Code of California. California Association of REALTORS? The Civil Code of California Commissioner's Regulations California Department of Real Estate National Association of REALTORS?
You can find all California codes here. Unless otherwise stated, all legal cases are from California. In citing cases, we specify only the names of the litigants and the year of the decision.
The forms cited in this course are from CAR?.
We use these typographic conventions:
We use margin notes to provide definitions and short footnotes.
Supplemental text is delimited in one of two ways: (1) When the text is lengthy, it is enclosed in a dashed, light-green box (as you see here); otherwise, (2) curly braces are used {as you see here} in line with the text. Supplemental text is considered part of this course.
Paragraphs set against a light-gray background (as you see here) are sidebars. Sidebars are explanatory notes and parenthetical content. The information contained within sidebars is not considered part of the course.
Opinions of and personal asides by the Editor, Chuck Milbourne, are set against a yellow background (as you see here). Feel free to skip these.
For consistency and economy, the Editor has changed all references to sections of the California Civil Code to "CC ?"; to the California Business and Professions Code to "BPC ?"; and to the Department of Real Estate Commissioner's Regulations to "CR ?". The symbol `?' may be read as "section" and the symbol `??' as "sections." "Et al," as in "CC ?2780 et al," may be read as "all the sub-sections that follow."
The pronouns "he" and "himself," when used in a general sense, refer to people of all genders.
Links When using Firefox or Edge, to access the links in this PDF book, do so as you would with any other link on any webpage; that is, click the link to view the linked page and click the browser's back button to return in place. For Chrome, press with the click to accomplish the same result. With Safari, the process is a bit more complicated and explained in this FAQ.
Trust Funds, 2022 Edition
TABLE OF CONTENTS
1 Editor's Preface
1
2 General Information
3
2.1 Trust Funds and Non-Trust Funds
3
2.2 Why a Trust Account?
3
2.3 Trust Fund Handling Requirements
4
2.4 Identifying Owners of Trust Funds
4
3 Trust Fund Bank Accounts
6
3.1 General Requirements
6
3.2 Trust Account Withdrawals
6
3.3 Interest-Bearing Accounts
7
3.4 Commingling Prohibited
8
3.5 Compensating Balances
9
3.6 Trust Fund Liability
11
3.7 Summary
12
4 Accounting Records
14
4.1 General Requirements
14
4.2 Columnar Records
15
4.3 Bank Account Record [#4522]
15
4.4 Separate Beneficiary Record [#4523]
16
4.5 Record of Undeposited Receipts [#4524]
16
4.6 Separate Property Record [#4525]
17
5 Other Accounting Systems
18
5.1 Journal
18
5.2 Cash Ledger
19
5.3 Beneficiary Ledger
19
6 Recording Process
20
7 Reconciliation
21
7.1 Purpose
21
7.2 With Bank Statement
21
7.3 Bank Account Record [#4522] With Each Separate Beneficiary
Record [#4523]
21
2022 ? 45HoursOnline
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