The trust account protects a client's money. But it is often the item most abused by untrustworthy real estate professionals. Most brokerages in our area do not use these anymore and escrow handles earnest money funds.

It's a requirement here to keep the broker from mingling escrow funds with their operating expenses.

What is so important about it is that IT'S SOMEONE ELSES MONEY THAT YOU ARE BEING TRUSTED WITH.

Stacey,

The trust account is TRUST. TRUST IS SACRED!   It has to have separate books and can be audited at any time for any reason.  It is its own account, and it protects the client's monies.  A

stacey wuyts It is very important when hanlding and protecting the funds of others.

Remember one of our fudiciary duties is accounting.  Also must states have laws about comingling funds.

it is an escrow account - not to be commingled with personal moneys 

You must account for funds of others.

Nothing.  No reason to have one in today's world unless you do property management.  We have never had one, all monies go straight into escrow.  We only see our commission checks.  Even back in the 80s and 90s before wire transfers, when you had a physical deposit check, it was never deposited only held onto (and even then we always advised against taking the check).

These are funds that have been entrusted to the broker that belongs to the clients. Ultimate care must be given to these funds.

It's not their money!  Brokers hold other people's money in trust, in a trust account.  The Real Estate Commission wants to be sure that money held in trust isn't being spent on agency expenses.  Looking at the disciplinary actions in the quarterly bulletine, they're right to be vigilant.

It is an account for holding the monies of others responsibly!

I'm a bit stymied by the nature of this question? It's the law to protect your clients' monies in a separate trust account and not to co-mingle fund. Is that not important in and of itself?

Michael Setunsky nailed this one!

It protects the client's mome

      The Florida DBPR audits escrow accounts - if your account is out of balance (short or over), you are in a heap of trouble - possible loss of license.   Easy solution to the problem:  do not maintain an escrow account!

When you are handling money for third parties...trust accounts are sacred

Co-mingling your clients money with yours will land you in prison and lose your license.

Best of luck with your studies.

It is a protection of the clients money to ensure it is there when closing happens or does not happen.

I like the comment from Ron and Alexandra Seigel and Lynnea Miller ! We close with title companies and do not hold the escrow money in any broker trust account....I like it that way.

It is required by your State to prevent co-mingling of funds you are entrusted with on behalf of your client with whom you owe a fiduciary duty.

The real estate sales side of our office doesn't use a trust account to hold money for clients. Most offices in my area don't hold money. We let the title companies do that. Our property management side does have a trust account. I stay away from that end of the business. 

It's a fiduciary responsibility to keep funds separate - not co-mingled - and secure.

Others have answered.

A broker just lost her license for playing with the money

it's an escrow account that holds other people's money....

Very important in property management--must balance monthly

Securing & protecting funds for others and must be handled with extreme diligence and care.

In my jurisdiction, some people have gone to jail, paid fines, been demoted, lost their licence or had other punishments.

It protects the client's money and produces interest for the state

stacey wuyts To protect client's funds.

It differs from state to state but Lynnea Miller has my answer.....

stacey wuyts - the trust account is for peace of mind of the clients.

The reale state commissions consider the publics money of prime importance. Trust but verify and you can lose your ability to be a broker if you screw up.