Which of the following is a feature of a real estate trust account?

• A. Brokerage must have at least one trust account in a bank
• B. Not for each client
• C. Funds may be withdrawn for business expenses
• D. Funds must be kept separate from personal funds

Answer: (A)

Real estate trust accounts are designed to protect client money by keeping it separate from the broker’s own funds. The essential feature is that the brokerage must have at least one trust account opened at a bank to receive and hold client funds. This setup creates a clear, auditable trail for all client money and prevents mixing it with the broker’s resources. Funds are not to be used for ordinary business expenses; disbursements must follow the transaction terms and go to the rightful parties. Keeping funds separate from personal funds is also required, but the key identifiable requirement highlighted here is the existence of a bank trust account to hold those client funds.