Real estate broker trust account
Real estate trust fund accounts, also called earnest money or escrow accounts, are accounts that a brokerage company will set up at a bank or some other recognized depository. Any and all money that a client gives the company or the company receives real estate broker trust account the client's behalf goes into a trust fund account. When a brokerage company sets up a trust fund account for the benefit of its clients, the broker is the trustee for the account.
This means that the broker is primarily responsible for the money that is in the account. The trust fund account keeps the client's money segregated from the broker's money.
This ensures that any money the client wishes to use for a real estate transaction remains in a secure account only accessible to the client or the broker.
Another benefit is insurance. A broker is not only responsible for his own actions, but also for the actions of his salespeople. Commingling is the act of mixing or mingling client's funds with the broker's own money. Generally, a licensee or broker found guilty of mixing or commingling his client's funds with his own personal account can have his license suspended or revoked.
If you feel that your broker has used real estate broker trust account that you put in a real estate trust fund for his own person use or has embezzled this money from you in any way, then you should consult a real estate attorney. An experienced real estate broker trust account will be familiar with the laws governing real estate trust funds and can advise you on whether you have a viable cause of action.
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