Definition: The amount a broker or property manager owes to others for funds held in trust or escrow.
Example
The escrow ledger shows $18,000 owed across three customers' deposits; that amount is a trust liability.
Keep the distinction clear
Money in the bank is an account balance; trust liability is what is owed to the beneficiaries. Reconciliation compares the records and identifies shortages or other differences.
Related terms
Trust Funds · Escrow Account · Liabilities
Keep studying
References: FREC Rule 61J2-14.012
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