Trust Account – David Reecher
A trust account is an account held by attorneys, real estate brokers, and other professionals to facilitate the transfer of funds from one party to another. In a real estate transaction, rather than the buyer making a check out to the seller, the buyer deposits the money in the real estate broker’s account, and at the appropriate time, the seller is paid from the broker’s trust account. The trust account arrangement exists for the benefit of both the buyer and seller. The buyer has the comfort of knowing that their money will stay in the broker’s trust account in the case of any disputes, and the seller is assured that the buyer’s funds are guaranteed to be available at closing. The funds are guaranteed because the buyer’s check has cleared and was deposited in the trust account before closing the real estate transaction.