Trust Accounts and Supervising Broker Duties
Montana brokers must safeguard client money and supervise affiliated licensees. This chapter covers trust-account rules and the supervising broker's accountability under Board rules.
Trust Account Requirements
A Montana broker who holds earnest money or other funds belonging to clients or customers must keep them in a trust account separate from the broker's own funds. Commingling or converting trust money violates Montana license law. The broker must maintain records of trust-account activity and account for the funds according to the transaction documents or a proper release.
Supervising Broker Accountability
A supervising broker is responsible for the licensed activity of affiliated salespersons and for the firm's compliance with Board rules, including advertising and disclosure. The supervising broker must ensure that affiliated licensees follow trust-account and agency rules. Failure to supervise can lead to discipline against the broker independent of the salesperson's conduct.
Recordkeeping and Audits
Montana brokers must keep transaction and trust-account records available for Board inspection. Accurate recordkeeping supports proper reconciliation of the trust account and demonstrates that client money has not been commingled. A broker who cannot account for trust funds faces serious disciplinary exposure.