Brokerage Trust Account Management Checklist

Confirm with the bank that the account is titled in the brokerage's name with a 'Trust' or 'Escrow' designation per the state commission's required wording — not the designated REALTOR's personal name. Mis-titled accounts are a common audit citation and can be treated as commingling even when funds are kept separate.

Most state commissions require that only the designated REALTOR or broker-in-charge has disbursement authority on the trust account. Remove any departed agents or admins from signatory lists before the next reconciliation cycle.

Capture the property address, contract effective date, EMD amount, and source (buyer check, wire, or cooperating broker). The clock for the state's deposit window starts at receipt — log the receipt timestamp accurately, since 'broker received but not deposited' is the single most common trust violation.

Most states require deposit to the trust account within 3 business days of receipt; some are tighter. Deposit goes directly to trust — never the operating account, even briefly. If the contract specifies a later deposit date, follow the contract but document the rationale in the file.

For any wired EMD or disbursement, call the title or escrow company at a phone number from a known prior file — not a number in the email. Wire fraud is the highest-loss event in residential real estate and the FBI IC3 reports show losses growing year over year. Document the call: who you spoke with, callback number, and time.

Attach the month-end bank statement, the trust account ledger (Brokermint, Lone Wolf back office, or QuickBooks subledger), and the per-transaction client subaccount totals. All three are needed for a true three-way reconciliation; pulling only two is the most common reconciliation shortcut and the most common citation.

Adjusted bank balance must equal the trust ledger balance must equal the sum of all client subaccount balances. Each transaction in flight (deposit not yet cleared, disbursement not yet cleared) needs to be identified and aged.

Mark whether bank, ledger, and client subaccount totals reconcile to the penny. State commissions accept timing differences (uncleared items) but not unexplained variance. Any variance — even $1 — must be investigated before sign-off.

Walk through the state commission's trust-account rule citations: deposit timing, signatory authority, recordkeeping, prohibited interest-bearing arrangements (or required IOLTA-equivalent for interest-bearing). Rules change — re-check the current version of the rule each cycle, not the version you trained on.

Scan the ledger for operating-fund deposits, broker fee withdrawals taken at the wrong time, or EMDs sitting in operating before transfer to trust. Even a 24-hour stop in operating is treated as commingling by most state commissions.

Most state commissions reduce penalties materially when a brokerage self-reports a trust violation before the violation surfaces in audit. Coordinate with the brokerage's E&O carrier and, if warranted, real estate counsel before submitting the self-report.

The broker-in-charge signs the monthly trust statement, accepting responsibility for the reconciliation. Some states require this signature in writing; others accept e-signature. Keep the signed statement with the month's reconciliation packet.

Each disbursement (EMD released to title at closing, EMD returned to buyer on a terminated contract, commission disbursement) generates a per-transaction closing statement. Reconcile against the ALTA settlement statement so the brokerage's record matches the closing record.