What Is Escrow / Trust Account?
A separate account in which a broker holds money belonging to others, such as earnest money, keeping it apart from the broker's own operating funds. Commingling client funds with personal funds is prohibited.
Escrow / Trust Account across 2 exams
Escrow / Trust Account appears on the following exams. Each defines it in the context candidates are tested on:
- TX Broker
- A separate account in which a broker holds money belonging to others, such as earnest money, keeping it apart from the broker's own operating funds. Commingling client funds with personal funds is prohibited.
- FL Sales Associate
- A separate, non-interest or interest-bearing account in which a broker holds funds belonging to others, such as earnest money deposits, keeping them apart from the brokerage's operating funds.