when purchasing a home, is it right to have the real estate agent tell us to wire the closing money into their company account
1 Answer from Attorneys
Proper accounting for trust funds and adequate record keeping are basic to the
management of a brokerage office and the legal responsibility of the broker. This
booklet will assist real estate brokers to understand the statutory and regulatory
requirements of Nevada’s license law for the handling of trust funds.
Failure of a real estate broker to manage properly or account for “funds
belonging to others” can result in license revocation whether that failure is one of
ignorance or negligence, whether intentional or unintentional. A broker’s
fiduciary responsibility makes the maintenance of adequate records necessary.
The broker is personally responsible for the supervision and maintenance of the
trust fund accounts and records. Neither delegation of duties, ignorance of daily
brokerage or management activities, nor failure to establish internal control
relieves the broker of the responsibility and potential liability that can result from
a failure to account adequately for money or maintain records.
Inadequate records or failure to maintain control of the trust funds can result in
internal theft, commingling of funds, misuse of trust funds, litigation and/or
disciplinary action. The use of an outside record keeping or accounting service
does not eliminate the need for broker supervision or substitute for the broker’s
Your attorney can explain further.
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