What are the responsibilities of a licensee with respect to trust funds and deposits?

• A. Keep deposits in a trust account, maintain accurate records, and remit funds as required by the agreement and regulations.
• B. Use deposits for personal expenses.
• C. Deposit funds in general operating account.
• D. Do not keep any records.

Answer: (D)

Trust funds must be kept separate from the licensee’s own money in a dedicated trust account, with every deposit and withdrawal properly recorded. The licensee is required to maintain accurate records in a trust ledger, reconcile the trust account regularly, and remit funds in accordance with the terms of the agreement and applicable regulations. Personal use of client deposits is prohibited, funds should not be deposited into a general operating account, and records must be kept for the required retention period. This approach protects client funds, ensures accountability, and aligns with regulatory requirements for real estate practice.