California Real Estate Practice Exam

Who can make withdrawals from a broker's trust account?

1. Bonded unlicensed employees of broker

2. Corporate officers of licensed real estate corporation

3. Sales associates employed by broker

4. All of the above

The correct answer is: Bonded unlicensed employees of broker

In the context of California real estate, the ability to make withdrawals from a broker's trust account is a highly regulated activity. Typically, only specific individuals who have been designated by the broker to conduct these transactions can do so. While bonded unlicensed employees may handle certain administrative tasks, they are usually not permitted to make withdrawals from the trust account directly. In comparison, corporate officers of a licensed real estate corporation and licensed sales associates employed by a broker may have the authorization to withdraw funds if the broker grants them this specific ability. The inclusion of "all of the above" suggests that those listed could all potentially make withdrawals from the broker's trust account, but this is misleading due to the stipulations regarding who can make such withdrawals. It is essential to verify who has explicit authorization from the broker, as this specificity protects the integrity of the trust account management and complies with state regulations governing real estate transactions. In conclusion, specifying that only bonded unlicensed employees can withdraw funds is imprecise, as it overlooks the potential for other authorized individuals like corporate officers or licensed sales associates to have this ability when given appropriate permission by the broker.