As part of the application process, the qualifying broker is responsible for opening a trust account and submitting the Trust Account Application to the Commission if the firm plans to hold trust funds in real estate brokerage transactions. The account must be a separate, federally insured bank checking account in a bank located in Georgia and must be designated by the bank as a trust or escrow account. Nonresident firms may open a trust account in a bank in their state of residence if the nonresident broker and the bank authorize the Georgia Real Estate Commission to examine the account any time the Commission may direct. The law allows interest-bearing trust accounts if before depositing the funds into such an account, the broker obtains the written agreement of the parties showing to whom the broker will pay any interest earned.
The firm must operate the trust account according to the requirements of the License Law and the Rules of the Commission. If you are new to trust account, we recommend reading our "How-To" article, Trust Accounting 101.
If the firm does not plan to hold any trust funds in real estate brokerage transactions, it is not required to open a trust account. If a firm does not have a trust account and receives any trust funds in a real estate brokerage transaction, the law requires that such firms open a trust account within one business day of the receipt of such funds and to file with the Commission immediately notice of opening the trust account.