6 facts about trust accounts
06/18/2015 | Author: Editorial Staff
Mishandling clients’ money can land you in a lot of trouble. Here are six facts about trust accounts that can help you use them properly.
- A trust account is an account in which a license holder keeps money on behalf of another person.
- Trust accounts must be in the broker’s name.
- Money received by the broker must be deposited in the trust account within a reasonable time.
- Trust accounts can be interest-bearing—but you must distribute the interest properly.
- Trust account records must be maintained for four years.
- Mixing trust money with the broker’s personal money or other non-trust money is illegal.
Get in-depth explanations of each fact plus more advice on trust accounts in “Where do you keep your clients’ money?” from the June issue of Texas REALTOR® magazine.
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