Key Takeaways
- Missouri brokers must maintain trust accounts (also called escrow accounts) for client funds
- Trust funds must be deposited promptly—typically within a few banking days of receipt
- Brokers must maintain accurate records of all trust account transactions
- Commingling broker funds with client funds is prohibited (with minor exception for account fees)
- MREC can audit trust accounts at any time to verify compliance
Last updated: January 2026
Trust Account Requirements
Missouri brokers are responsible for properly handling client funds in designated trust accounts (also called escrow accounts).
What is a Trust Account?
A trust account is a separate bank account where brokers hold:
| Type of Funds | Examples |
|---|---|
| Earnest money deposits | Buyer's good faith deposit |
| Security deposits | Rental property deposits |
| Rent payments | Property management funds |
| Other client funds | Held for others |
Account Requirements
| Requirement | Details |
|---|---|
| Separate account | Cannot be broker's personal/operating account |
| Missouri bank | Must be in a Missouri financial institution |
| Federally insured | FDIC insured bank |
| Account title | Clear identification as trust account |
| Broker control | Under broker's direct control |
Depositing Trust Funds
Timing Requirements
Trust funds must be deposited promptly:
| Situation | Deposit Deadline |
|---|---|
| Earnest money | Within timeframe specified in contract |
| General rule | Within a few banking days of receipt |
| Property management | Per management agreement |
What is "Promptly"?
| Acceptable | Not Acceptable |
|---|---|
| Next banking day | Holding for weeks |
| Within contract deadline | Until transaction closes |
| Reasonable business time | Personal use of funds |
Commingling Prohibition
What is Commingling?
Commingling is mixing client funds with broker's personal or business funds:
| Prohibited | Allowed |
|---|---|
| Client funds in personal account | Client funds in trust account |
| Broker funds in trust account | Minimal amount for bank fees |
| Mixing different client funds | Separate accounting per client |
Broker Funds in Trust Account
A broker may keep a minimal amount in the trust account:
| Purpose | Amount |
|---|---|
| Bank service charges | Enough to cover fees |
| Avoid overdraft | Small buffer |
Key Point: Brokers cannot keep earned commissions in the trust account. Once earned, commissions must be transferred out.
Record Keeping Requirements
Required Records
Brokers must maintain:
| Record Type | Details |
|---|---|
| Transaction ledger | All deposits and withdrawals |
| Client ledgers | Individual client accounts |
| Bank statements | Monthly reconciliation |
| Contracts | Supporting documentation |
| Receipts | Deposit and disbursement records |
Retention Period
| Record Type | Retention |
|---|---|
| Trust account records | Minimum 5 years |
| Transaction files | Per MREC requirements |
| Bank statements | 5 years |
Trust Account Audits
MREC Authority
MREC can audit trust accounts at any time:
| Audit Trigger | Reason |
|---|---|
| Routine audit | Random compliance check |
| Complaint | Consumer or licensee complaint |
| Investigation | Suspected violation |
| License renewal | Periodic review |
Audit Requirements
During an audit, brokers must provide:
- Bank statements
- Transaction records
- Client ledgers
- Reconciliation documents
- Supporting contracts
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Test Your Knowledge
What is commingling in Missouri real estate?
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Test Your Knowledge
How long must a Missouri broker retain trust account records?
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