Texas REALTORS® 2018 Winter Meeting | Feb. 9-13 | Austin, Texas

6 facts about trust accounts

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Two hands portioning $1 bills into three stacks

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.

Categories: Business tips
Tags: brokers, trust accounts

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Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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