Trust Accounts and Broker Supervision
The Georgia qualifying broker is accountable for trust funds and for supervising affiliated licensees. This chapter covers trust-account rules, supervision duties, and disputed deposits.
Trust and Escrow Accounts
Client funds such as earnest money must be held in a designated trust/escrow account, separate from the broker's business and personal funds. Commingling or converting trust money is a serious violation of Georgia license law. The qualifying broker is responsible for the account's integrity and recordkeeping, and GREC audits can review it.
Supervision of Affiliated Licensees
The qualifying broker must establish and enforce reasonable procedures so affiliated licensees comply with Georgia license law, including reviewing transactions and advertising and ensuring proper trust-fund and disclosure handling. GREC can discipline a broker for failure to supervise even when a salesperson committed the underlying violation. This accountability is a core reason for the broker tier.
Disputed Deposits
When the parties dispute who is entitled to earnest money the broker holds, the broker is a neutral stakeholder and must not decide the dispute. GREC rules let the broker hold the funds and, if needed, use interpleader so a court can determine entitlement. Retaining the money until written agreement or a court order protects the broker and the parties.