Where is My Money Deposited?
During the every day course of being in business, Real estate brokers and property management companies accept funds from their tenants and home owner clients. What happens to these funds and where are they deposited?
By California law and regulation under the Bureau of Real Estate, property managers are required to account for these "trust funds" within established and required standards. This includes the immediate deposit of the accepted funds (within 3 days or sooner) into a Broker Trust Account. If the monies are not handled correctly by the property manager, the funds could be at risk and the Broker could be subject to license suspension.
Make Sure Your Funds Are Handled Properly!
If you are considering renting your home, it is critical to hire a property management company that places your reserve funds and the tenant's rent or security deposit funds into a properly established Broker Trust Account. This topic was recently featured on the Property Management Brainstorm podcast with Bob Preston, President/Broker of North County Property Group, discussing the topic with Allison Disarro of Seacoast Commerce Bank. Allison provides an excellent explanation of the nuances, requirements, and importance of the trust account, documents and process required of the broker to set the account up, and what questions should be asked of a property management company to gain assurance that their funds are properly deposited and protected. Listen to the podcast here.
Assurance of Proper Accounting
At North County Property Group, we've established our Broker Trust Account properly under full compliance and transparency with Bureau of Real Estate regulations. We further follow all accounting principles regarding trust accounting and reporting transactions to our client homeowners. With North County Property Group your funds are safe with us!
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