What Is Trust Account?
A separate bank account a broker uses to hold client or third-party money apart from the broker's own funds, preventing commingling.
Trust Account across 3 exams
Trust Account appears on the following exams. Each defines it in the context candidates are tested on:
- CA Broker
- A separate bank account a broker uses to hold client or third-party money apart from the broker's own funds, preventing commingling.
- IL Broker
- A segregated bank account where brokers hold client funds such as earnest money deposits, down payments, and other customer monies pending closing. Illinois law requires brokers to maintain trust accounts separately from operating accounts and reconcile them monthly.
- FL Broker
- A segregated bank account held by a broker or firm to hold client funds such as earnest money deposits and other trust monies. Brokers must maintain these accounts separately from their operating accounts and cannot use the funds for personal or business expenses.