Dylan Dewey (Industry Observer)

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Rainmaker
1,004,032
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Don't have one, that's the most important thing.  No account equals no headaches and random auditors ruining your day.

Nov 09, 2017 09:24 AM
Rainmaker
461,024
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

To keep from co-mingling your clients money with yours, keep your license and probably not go to jail.

Nov 09, 2017 10:04 AM
Rainmaker
527,827
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

You mean besides the fact that having a trust account with problems is the quickest way to lose your license?

Nov 09, 2017 10:03 AM
Ambassador
3,208,181
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

If not used properly you could go to jail.

Nov 09, 2017 01:32 PM
Rainmaker
462,706
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

A Trust Account is a requirement when you open an office. You don't have one, you jeopardize your license. 

Nov 09, 2017 01:22 PM
Ambassador
2,343,254
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

TRUST!

No fishy business allowed!

Nov 09, 2017 11:38 AM
Rainmaker
2,211,224
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

The word "trust account" should give you a clue.

Nov 09, 2017 10:56 AM
Rainmaker
899,748
Corinne Guest, Managing Broker
Barrington Realty Company - Barrington, IL
The Best in Buyer Representation

It's a brokers liability. Do not mix funds, do not use the funds, it's not your money. Best way is not to have a trust/escrow fund account at all. Let it be someone elses issue. The reporting requirements are a pain in the every flippin months side! Title companies do this kind of fund looking after as part of their function, let them hold it.

Nov 09, 2017 09:42 AM
Ambassador
1,304,385
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

It's the law.

Nov 09, 2017 09:29 AM
Rainmaker
251,697
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

It is where the client's funds are kept and the fiduciary duty of the brokerage is to insure that the funds are safe. More real estate licensees are in trouble with their state agency over improper oversight of the trust account than any other issue. It is a big deal.

Nov 09, 2017 09:05 AM
Rainmaker
4,391,812
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

You must keep the funds of others separate from your own.

Nov 09, 2017 11:30 AM
Rainmaker
4,063,585
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

no commingling of money.... 

Nov 09, 2017 10:23 AM
Rainmaker
811,307
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

To hold money deposit from clients for the brokerage business. It is brokerage piggy bank.

Nov 09, 2017 09:59 AM
Rainmaker
2,471,707
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

In states that allow another entity, like an attorney ot title company, to hold the money don't open an account. You will need to audit it often and it is a pain.

Nov 09, 2017 09:45 AM
Rainmaker
49,106
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

I contains other peoples money.

Nov 09, 2017 09:40 AM
Rainmaker
2,731,908
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Ryan Huggins - Thousand Oaks, CA nailed this one!

Nov 10, 2017 04:19 AM
Ambassador
1,920,114
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     Most Florida Brokers don't keep a trust account/escrow account... the exceptions being large companies, property management, and a few others.  We place all deposit money with a title attorney or title company; let them hold it.

Nov 09, 2017 02:50 PM
Rainmaker
2,266,039
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Dylan Dewey Many good answers.

Nov 09, 2017 02:19 PM
Rainmaker
1,146,444
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

 Welcome to ActiveRain.  Hope to see you after you pass the test.

Nov 09, 2017 02:19 PM
Rainmaker
642,768
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Prevents co-mingling of funds, which is ilegal.

Nov 09, 2017 12:46 PM
Rainmaker
2,345,924
Richard Weeks
Dallas, TX
REALTOR®, Broker

In Texas if you going to receive clients money it is the law.

Nov 09, 2017 11:40 AM
Rainmaker
3,815,735
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good answers below.

Nov 09, 2017 11:13 AM
Rainmaker
3,427,651
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Well, in MInnesota it is a Brokers license requirement.

Nov 09, 2017 11:00 AM
Rainmaker
2,223,319
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Licensing requires this rule, regulation & standard to protect the consumer

Nov 09, 2017 10:44 AM
Rainmaker
3,338,148
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

The real estate commission is HOT on what happens with earnest money.   We are not seeing broker trust accounts as much now, we use title companies to hold EM.

Nov 13, 2017 07:47 AM
Rainmaker
1,408,311
Sandy Padula and Norm Padula, JD, GRI
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

It is a great place to pull $$ from when I am short on cash

Nov 11, 2017 05:11 AM
Rainmaker
2,519,404
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

You are so right about this question having been asked before. 

I do not have one.  No need to in today's world with how I manage my business.

Nov 10, 2017 07:32 AM
Rainmaker
1,303,952
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Dylan Dewey In my State it's called an Escrow Account. It insures that a customer or client's funds are protected by law and can only be used for such purpose. Violating escrow laws will cause a broker to lose their license and potentially face some prison time.

Nov 10, 2017 07:26 AM
Rainmaker
1,837,320
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Everything. It is sacred. As important to protect as needing air, water, love.

Nov 10, 2017 06:12 AM
Rainmaker
4,043,582
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

The money.

Nov 10, 2017 05:52 AM
Rainmaker
514,627
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

It ensures funds are kept separate from the Broker's funds and not mixed in or confused. It simplifies the accounting process and protects all parties.

Nov 10, 2017 05:01 AM
Rainmaker
1,269,195
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

I do not deposit anymore into a broker trust account, all is wired these days. 

Nov 09, 2017 10:55 PM
Rainmaker
3,286,407
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Hella M. Rothwell, Broker/Realtor® has the answer for you!

Nov 09, 2017 07:27 PM
Ambassador
3,482,798
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

The answer to this is in every Prelicense Book I have ever seen. I have been teaching Prelicense for 33 years and used multiple textbooks. How does asking this question help you? We here in ActiveRain know the answer (don't need a review) and bottom line shouldn't you be getting the official position /answer) from your course text?

Nov 09, 2017 05:17 PM
Rainmaker
3,533,325
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding and Marketing

Everything.  It is money held in TRUST.  It has to be in a separate account, and it regulated by the real estate board and laws thereof.  It can be audited at any time.  A

Nov 09, 2017 03:18 PM