2832. Trust Fund Handling.

2832. Trust Fund Handling.
(a) Compliance with Section 10145 of the Code requires that the broker place funds accepted on behalf of another into
the hands of the owner of the funds, into a neutral escrow depository or into a trust fund account in the name of the
broker, or in a fictitious name if the broker is the holder of a license bearing such fictitious name, as trustee at a bank or
other financial institution not later than three business days following receipt of the funds by the broker or by the
broker’s salesperson.

(b) Except as expressly provided by subdivision (d) of Section 10145 of the Code or by a regulation in this article, the
account into which the trust funds are deposited shall not be an interest-bearing account for which prior written notice
can by law or regulation be required by the financial institution as a condition to the withdrawal of funds.
(c) A check received from the offeror may be held uncashed by the broker until acceptance of the offer if

(1) the check by its terms is not negotiable by the broker or if the offeror has given written instructions that the
check shall not be deposited nor cashed until acceptance of the offer and
(2) the offeree is informed that the check is being so held before or at the time the offer is presented for acceptance.

(d) In these circumstances if the offeror’s check was held by the broker in accordance with subdivision (c) until
acceptance of the offer, the check shall be placed into a neutral escrow depository or the trust fund account, or into the
hands of the offeree if offeror and offeree expressly so provide in writing, not later than three business days following
acceptance of the offer unless the broker receives written authorization from the offeree to continue to hold the check.

(e) Notwithstanding the provisions of subdivisions (a) and (d), a real estate broker who is not licensed under the Escrow
Law (Section 17000, et seq., of the Financial Code) when acting in the capacity of an escrow holder in a real estate
purchase and sale, exchange or loan transaction in which the broker is performing acts for which a real estate license is
required shall place all funds accepted on behalf of another into the hands of the owner of the funds, into a neutral
escrow depository or into a trust fund account in the name of the broker, or in a fictitious name if the broker is the holder
of a license bearing such fictitious name, as trustee at a bank or other financial institution not later than the next business
day following receipt of the funds by the broker or by the broker’s salesperson.