Trust Account

Separate bank account, segregated from a broker's own funds, in which the broker is required by state law to deposit all monies collected for clients; in some states called an escrow account.

A separate bank account segregated from a broker's own funds, in which the Broker is required by state law to deposit all monies collected for clients. In some states called an Escrow Account.
Example: A broker who fails to deposit Earnest Money into a separate trust account may be held Liable for penalties under the state's real estate License laws.