Trust Funds Requirements

Trust Funds Requirements of CENTURY 21 Alpha

(Initial Deposits and Increased Deposits)

According to Business and Professions Code Section 10145, a real estate salesperson who accepts trust funds on behalf of the broker under whom he or she is licensed must immediately deliver the funds to the broker or, if directed to do so by the broker, place the funds into the hands of the broker’s principal or into a neutral escrow depository or deposit the funds into the broker’s trust fund bank account.

A neutral escrow depository, as used in Business and Professions Code Section 10145, means an escrow business conducted by a person licensed under Division 6 (commencing with Section 17000) of the Financial Code or by any person described in subdivisions (a)(1) and (a)(3) of Section 17006 of the Financial Code.

 NOTE: Either Option 1.or Option 2. is the recommended procedure for CENTURY 21 Alpha.

ALL salespersons and/or Brokers associated with CENTURY 21 Alpha are directed to place ALL trust funds received into the selected Title Company on or before 3 days after contract acceptance or as agreed upon in said contract.

NOTE: There are no exceptions to this rule. (CAR Form RPA-CA, Revised 12/15)

Option 1. (Known/Unknown Title Company) (CAR Form RPA-CA, Revised 12/15 Clause 3A.(1)
Buyer to deliver the deposit to the Title Company via electronic funds transfer, cashier’s check or personal check.  You do not have a deposit check.

Option 2. (Known Title Company - you have the deposit check) (CAR Form RPA-CA, Revised 12/15 Clause 3 A.(2)  Never present an offer to the seller indicating a deposit check has been received without have the original signed deposit check (not a copy) in you possession. Deliver the deposit check to the Title Company yourself. Never have a Buyer write a deposit check to _____ (Blank) Title Company. No exceptions.

NOTE: Option 1.is the best method and recommended by Broker and CENTURY 21 Alpha, however, do not recommend wiring the funds based on the wire fraud cases in the Buy Area and provide C.A.R. Form WFA (Wire Fraud Advisory).

Never present an offer to the seller indicating a deposit check has been received without have the original signed deposit check (not a copy) in you possession. Deliver the deposit check to the Title Company yourself. Never have a Buyer write a deposit check to _____ (Blank) Title Company. No exceptions.

In all events: 1.   Give your consultant the completed Deposit Transmittal for Trust Funds. Click Here for the transmittal  fill-in form.

2.Deliver to your consultant a receipt from the title company for the buyer’s deposit. Silver Creek - Greg Cormier,  Campbell - Candy Gonzales

NOTE #1: On an increased deposit to ensure said increase has liquidated damages, you must have buyer and seller execute CAR Form RID.

NOTE #2: DO NOT ALLOW THE BUYER TO MAKE THE CHECK PAYABLE TO CENTURY 21 ALPHA.  Title companies are not accepting endorsed checks. When that happens a new check is demanded which takes time (may be impossible)  and the purchase contract is breached.

Customer Personal Identity Protection:
In addition, ALL documents including but not limited to trust fund checks sent via email, regular mail, and/or FAX MUST have the account numbers and Social Security Number conceal by marking over said with a lead pencil. Only mark on photocopies of said documents.

For FIRPTA use the QUALIFIED SUBSTITUTE DECLARATION OF POSSESSION OF TRANSFEROR'S AFFIDAVIT OF NONFOREIGN STATUS
(C.A.R. Form QS, 4/09)