Article 8-Where’s the Money?
Posted in REALTORS Code of Ethics by Karen Rhodes on June 5th, 2007 Article 8
REALTORS® shall keep in a special account in an appropriate financial institution, separated from their own funds, monies coming into their possession in trust for other persons, such as escrows, trust funds, clients’ monies, and other like items.
All money received in trust for clients and customers must be kept in a special account that is totally separate from any other accounts the firm may have. That money is not to be touched for any reason other than it’s intended purpose. This account is closely audited by the state.
Janie said,
June 6, 2007 @ 2:40 pm
So, is it ethical for listing agents to put in their remarks that “sellers have authorized them to be holders of any earnest monies put down on this property”. As yet I haven’t made an offer on a listing with such a remark, but I would not feel comfortable giving to another broker monies that my clients have entrusted to me and my broker. (or am i totally misreading these remarks?)
Karen Rhodes said,
June 6, 2007 @ 2:53 pm
Who holds the earnest money is negotiated with the offer. The TN state Purchase and Sale agreement has a spot to fill in on who will be holding earnest money. My buyer clients give me permission to be the holder of their earnest money in every offer I write. I haven\’t had it challenged yet and really don\’t expect to be. Thanks for reading!