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(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.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on August 16, 2000
TRD-200005812 Mark A. Moseley
General
Counsel
Texas Real Estate Commission
Effective date: October 1, 2000
Proposal publication date: May 26, 2000
For further information, please call: (512) 465-3900
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