Trust Funds

Oct. 26th 2010

Proper trust fund handling is a very important part of real estate transactions. Accepting these funds creates a fiduciary responsibility to your client. Like any aspect of real estate, there are specific requirements set forth by California Real Estate Law and Regulations of the Real Estate Commissioner.

The responsible broker must keep complete and accurate records of all funds received, the dates they were received, check numbers and the balance of the account for each beneficiary or transaction. All records must be made available for audits by the Commissioner or a representative of the Commissioner.

Trust fund discrepancies are a violation of real estate law and are cause for suspension or revocation of your license. These discrepancies can be for shortage or overages. It is important to make an internal audit of all accounts a regular monthly practice in your business.

Trust funds are a common and important part of the industry and need to be handled with extreme caution.

 

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The importance of understanding Real Estate forms

Fair Housing For All

Ethics: Use in the Industry.

An agents responsibility to disclose.

Consumer Financial Protection Bureau

The Benefits of Online Real Estate Schools

Continuing Education for the California Real Estate Agent

Choosing a California Real Estate Broker

Selling strategies to get a home sold