Idaho Trust Accounts and Client Money
Handling client money correctly is a core broker responsibility in Idaho. This chapter covers earnest-money deposits, property-management funds, and the prohibition on commingling and conversion.
Earnest Money and Deposit Deadlines
Client funds such as earnest money must be deposited into a separate trust account within the time frame set by IREC rules and kept apart from the brokerage's operating and personal funds. The designated broker is responsible for maintaining accurate trust-account records and being able to account for all client money.
Property-Management Funds
A broker who manages rentals must hold rents, security deposits, and owner reserves in a trust account with records that separately identify each owner's funds. Commingling these funds with the broker's own money is prohibited, and the broker must reconcile the account regularly.
Commingling and Conversion
Using client trust money to pay the brokerage's own expenses is conversion and a serious violation; mixing client and firm funds is commingling. IREC rules generally allow a broker to keep only a small amount of the broker's own funds in the trust account to cover authorized bank service charges. Trust-account violations are a frequent basis for discipline.