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Frequently Asked Questions - Trust Accounts

  1. May I have an interest-bearing account for earnest money and security deposits?
  2. Can the Commission recommend a bank that does not charge too much to keep a trust account open?
  3. What kind of record keeping do I need?
  4. How much of my own money can I keep in a trust account?
  5. Do I need separate trust accounts for rental property?

Q. May I have an interest-bearing account for earnest money and security deposits?

A. Yes, provided: (1) all parties to each transaction specifically agree in writing who is to receive any interest earned, (2) the bank designates the account as a trust account, and (3) you register it with the Commission on a Commission approved application. See License Law 43-40-20 and Rule 520-1-.08.

You can open, close and renew trust account online or by downloading the appropriate form. To access these services please see the Trust Account section of this website.

Q. Can the Commission recommend a bank that does not charge too much to keep a trust account open?

A. No. Contact several banks about their charges for such accounts.

Q. What kind of record keeping do I need?

A. For an overview of Trust Accounts and the required record keeping we recommend reviewing our article "Trust Accounting 101". You can also see License Law 43-40-25 (a )( 27) and Rule 520-1-.08.

Q. How much of my own money can I keep in a trust account?

A. Enough to cover service charges the bank may charge. See Rule 520-1-.08.

Q. Do I need separate trust accounts for rental property?

A. Not necessarily. The volume of your business and your accountant should help determine this issue for you. If you do have a separate account for rentals, it must be properly registered with the Commission. See License Law 43-40-20 and Rule 520-1-.08.