Under TREC rules, a broker who is also a property manager holds both earnest money from sales transactions and security deposits from rental properties in the same trust account. Under TREC rules, is this permitted?
Correct Answer
C) Yes, the broker may use one trust account for both types of funds as long as proper records identify each type and each client's funds
Under TREC rules, a broker may use one trust account for both earnest money and property management funds. The key requirement is that accurate records must be maintained to identify each client's funds and the source and purpose of each deposit.
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