| (a) For the purposes of this section, "trust account" includes
any trust, escrow, custodial, property management account , or other account
in which a licensee holds money on behalf of another person.
(b) A licensee maintaining a trust account shall retain for
a period of four years a documentary record of each deposit or withdrawal
from the account.
(c) If a licensee accepts money belonging to others, the licensee
holds such money in a fiduciary capacity. If any or all of the parties to
a real estate transaction make demand for the money, the licensee must, within
a reasonable time, properly account for or remit the money. "Reasonable time"
means within 30 days after demand is made for an accounting or for remittance
of money belonging to others.
(d) "Properly account for or remit" means to pay the money
to the party or parties entitled to the money if it can be reasonably determined
to which party or parties the money should be paid. A licensee may pay the
money into the registry of a court and interplead the parties if it cannot
be reasonably determined to which party or parties the money should be paid.
(e) If, by written agreement of the parties to the real estate
transaction, the licensee holding money belonging to others has the right
to require the receipt, release and authorization in writing from all parties
before paying the money to any party or parties, and if the licensee chooses
to exercise that right, "properly account for or remit" means to furnish every
party with a written statement requesting such receipt, release and authorization
and detailing the amount and place of custody of the money and to pay the
money to the party or parties in accordance with the receipts, releases and
authorizations, if obtained. A licensee may pay the money into the registry
of a court and interplead the parties if the receipts, releases and authorizations
that the licensee has the right to require cannot be obtained.
(f) If escrow or other money belonging to another is held by
a licensee, it must be maintained in a trust account. Placing such money in
a licensee's operating account constitutes commingling.
(g) If a licensee acquires ownership of money in the licensee's
trust account that was originally held in trust for another, such money must
be removed from the trust account within a reasonable time. "Reasonable time"
in this context means within 30 days after the licensee acquires ownership
of the money.
(h) Paying operating expenses or making withdrawals from a
broker's trust account for any purpose other than proper disbursement of money
held in trust is prima facie evidence of commingling money held in trust with
the broker's own funds.
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| Source Note: The provisions of this §535.146 adopted to be effective January 1, 1976; amended to be effective August 7, 1977, 2 TexReg 2846; amended to be effective May 27, 1998, 23 TexReg 5437; amended to be effective October 1, 2000, 25 TexReg 8646 |
