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Key Takeaways

  • Arizona brokers must maintain trust accounts in federally insured Arizona depositories
  • Trust funds must be deposited promptly (within 3 business days in most cases)
  • Commingling of trust funds with personal or business funds is prohibited
  • Trust accounts must be reconciled at least monthly
  • Records must be retained for 5 years and be available for ADRE inspection
Last updated: January 2026

Arizona Trust Account Requirements

Proper handling of client funds is one of the most important responsibilities of an Arizona broker.

Trust Account Basics

Account Requirements

Arizona brokers must:

RequirementSpecification
Account TypeTrust account in Arizona depository
InsuranceMust be federally insured
Account NameMust indicate "trust"
SignatoryDesignated broker or authorized party

Types of Funds in Trust

Fund TypeDescription
Earnest moneyDeposits on purchase contracts
Security depositsRental property deposits
Rent collectionsProperty management receipts
Client fundsAny funds held for others

Deposit Requirements

Timing

Trust funds must be deposited promptly:

  • Generally within 3 business days
  • Per ADRE rules and contract terms

Delivery to Third Party

If funds are to be held by another party (escrow company):

  • Deliver within timeframe specified
  • Document the delivery

Best Practice: Deposit or deliver trust funds as soon as practical, even if earlier than required.

Prohibited Practices

Commingling

Commingling is mixing trust funds with personal or business funds:

ProhibitedPermitted
Deposit personal funds in trustMinimal amount for bank fees
Use trust funds for business expensesSeparate operating account
Transfer without authorizationAuthorized disbursements

Conversion

Conversion is using trust funds for personal purposes:

  • Criminal offense
  • Grounds for license revocation
  • May result in prosecution

Premature Disbursement

Cannot disburse trust funds until:

  • Transaction closes, OR
  • Written agreement of all parties, OR
  • Court order

Trust Account Maintenance

Reconciliation

RequirementFrequency
Bank statement reconciliationMonthly minimum
Trial balanceMonthly
Resolution of discrepanciesImmediately

Record Keeping

Required records include:

  • Bank statements
  • Deposit records
  • Check register
  • Transaction documentation
  • Reconciliation reports

Retention Period: 5 years minimum

ADRE Access

ADRE may:

  • Audit trust accounts
  • Inspect records
  • Request documentation
  • Take action for violations
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Arizona Trust Account Flow
Test Your Knowledge

How long must Arizona brokers retain trust account records?

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Test Your Knowledge

How often must Arizona brokers reconcile trust accounts?

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