§ 2830. Broker Placement of Trust Funds with Financial Institutions.
10 CA ADC § 2830Barclays Official California Code of Regulations
10 CCR § 2830
§ 2830. Broker Placement of Trust Funds with Financial Institutions.
The relationship between a real estate broker and a client for whom the broker holds funds in trust is an agency relationship. As an agent, the broker owes a fiduciary duty to the client regarding the handling of the trust. Any benefit received by the broker relating to the broker's handling of client funds in trust belongs to the client by law, and the broker must pass that benefit along to the client.
(a) Unless in possession of written permission from the client, it is unlawful for any real estate broker, including any corporate broker, to receive, directly or indirectly, any commission, compensation, or other consideration, whether personal or professional, from any person or institution other than the client as an inducement for the placement of a trust fund account in accordance with Section 10145 of the Business and Professions Code. Actual placement of a trust fund account is not a precondition to a violation of this section, whether the violation is or is not a per se violation pursuant to subsection (c), below.
(1) Promotional items with a permanently affixed company logo of the bank or other recognized depository with a value of not more than ten dollars ($10) each. “Promotional item” does not include a gift certificate, gift card, or other item that has a specific monetary value on its face, or that may be exchanged for any other item having a specific monetary value.
Credits
Note: Authority cited: Section 10080, Business and Professions Code. Reference: Sections 10145 and 10176, Business and Professions Code.
History
1. New section filed 9-26-2011; operative 10-26-2011 (Register 2011, No. 39). For prior history, see Register 96, No. 46.
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 10, § 2830, 10 CA ADC § 2830
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