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Rainmaker
1,413,614
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Your text book explains it.

Aug 06, 2019 08:08 AM
Rainmaker
699,838
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

That they are entrusted to hold other's money. Like a Treasurer, honesty & accountability are a must. 

Aug 06, 2019 07:24 AM
Rainmaker
468,799
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

Depending on what state you're in, it's easier on  the office to not have a trust account and let the escrow/tittle company deal with it and keep the real estate company out of possible trouble.

Aug 06, 2019 09:32 AM
Rainmaker
924,200
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Having one greatly increases your risk of complaints and audits.

It must be kept immaculately balanced using GAAP (generally accepted accounting principles)

You are handling and most likely commingling others' money (your account will hold monies from multiple clients). HOWEVER, It CANNOT be commingled with YOURS, or converted into your funds for any reason.

Unless you absolutely MUST have one (and many states, with technology have the ability now for a tenant to directly pay an owner), it's best to not have a trust account. If you do, make sure yours is compliant with State statute.

Aug 06, 2019 07:59 AM
Rainmaker
1,748,998
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Someone has to hold that good faith money that the buyer puts up. Cannot be used for any reason.

See another question that someone posted yesterday about using earnest money.

Aug 06, 2019 07:33 AM
Rainmaker
1,022,994
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

The escrow account keeps client's deposits in a separate account so the funds are not co-mingled 

Welcome to AR

Aug 06, 2019 07:29 AM
Ambassador
5,614,206
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

A great interest earner for the state.

Aug 06, 2019 03:24 PM
Rainmaker
2,013,984
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

 If you don't know the answer to this one it's a BIG problem COLLEEN MANLEY as it is the very root of our fiduciary responsibilities.

Aug 06, 2019 12:54 PM
Rainmaker
2,669,333
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

It allows anyone who wants/needs to follow the money......

Aug 06, 2019 09:23 AM
Ambassador
3,119,719
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I wish you all the best with your real estate studies.  Study your textbook. 

Aug 06, 2019 09:18 AM
Rainmaker
908,513
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

If client money is co-mingled with broker/agent money the outcome is often as shown.

Aug 06, 2019 07:42 AM
Rainmaker
1,231,605
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

 Very important. Come to class tomorrow to learn more.

Aug 06, 2019 05:21 PM
Rainmaker
6,859,293
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

You need to take great care when handling the funds of others.

Aug 06, 2019 01:29 PM
Rainmaker
977,017
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

TRUST says it all. The funds in a trust account belong to someone else. The trustee is the caretaker of the funds and it is the duty of the trustee to see that the funds are safeguarded and paid to the rightful owner(s).

Aug 06, 2019 09:34 AM
Rainmaker
4,336,347
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I'm not at all sure I understand this question. What are you getting at?

Aug 06, 2019 09:02 AM
Rainmaker
4,224,234
Richard Weeks
Dallas, TX
REALTOR®, Broker

In Texas and most other states one is not allowed to co-mingle funds.

Aug 06, 2019 08:19 AM
Rainmaker
5,573,163
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

intermingling of funds is illegal....

Aug 06, 2019 07:36 AM
Rainmaker
4,417,728
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

In many states you are not required to have one. Many beokers use a title company or an attorney to hold money on behalf of others.

Aug 07, 2019 04:01 AM
Rainmaker
1,708,135
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Ask your real estate commission.

Aug 06, 2019 06:51 PM
Rainmaker
3,611,002
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

COLLEEN MANLEY to keep the money separate.

Aug 06, 2019 04:09 PM
Rainmaker
5,764,585
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Colleen,

It is money held in trust.  Trust is the key word.

Aug 06, 2019 12:53 PM
Ambassador
3,351,789
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

We do not have a trust account for our company as we are not property managers. All earnest money funds go directly into escrow upon contract acceptance.

Aug 06, 2019 09:46 AM
Rainmaker
584,734
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

It is where a client's money can be safely stored.  However, the importance has really gone down a lot over the past few years as most brokerages, unless they are conducting property management, rarely use them anymore.

Aug 06, 2019 09:39 AM
Rainmaker
5,165,841
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Good luck with your studies.

Aug 22, 2019 05:11 PM
Rainmaker
1,597,930
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

No idea..

Aug 16, 2019 04:14 PM