Arizona Trust Accounts and Property Management
Arizona brokers are accountable for client money held in trust and for property-management funds. This chapter covers trust-account handling, written property management agreements, and reconciliation.
Trust-Account Handling
Trust funds such as earnest money must be kept in a designated trust account, recorded accurately, and never commingled with the broker's own operating or personal funds. Commingling and conversion of trust funds are serious violations, and the designated broker is responsible for proper handling.
Property Management Agreements
Arizona requires a written property management agreement, and rents and deposits collected for owners must be handled through a trust account with proper records. This applies to residential and commercial management alike, and the designated broker is accountable for these funds.
Reconciliation
Brokers must reconcile the trust account regularly, commonly monthly, matching the bank balance to the ledgers of individual beneficiaries. Reconciliation catches shortages, errors, and commingling early, and the designated broker must ensure it is performed and documented.