Trust Funds

Definition: Money or items of value held for another person under an obligation to safeguard and properly account for them.

Example

A brokerage holds a buyer's earnest money pending the contract's settlement instructions.

Keep the distinction clear

Funds held in trust are not available to pay the brokerage's bills. Improper mixing is commingling; unauthorized use is conversion.

Related terms

Escrow Account · Commingling (Commingle) · Conversion (Entrusted Money or Property)

Keep studying

Florida Escrow Accounts: Personal Funds and Interest-Bearing Accounts

References: Florida Statutes 475.25: discipline and escrow disputes · California DRE: real estate glossary

Pronunciation (US): TRUST FUNDZ (capitals show stress)

Pronunciation reference: Merriam-Webster