Trust and Escrow Handling in Nebraska
Nebraska brokers must safeguard client money in trust accounts. This chapter covers the handling of earnest money and other funds belonging to others.
Trust Account Requirement
A Nebraska broker who holds earnest money or other funds belonging to clients or customers must place them in a trust or escrow account kept separate from the broker's own funds. Commingling or converting trust money violates the license law. A salesperson who receives funds must promptly deliver them to the designated broker.
Accounting and Disbursement
The broker must account for trust money and disburse it according to the transaction documents or a proper release. When entitlement to earnest money is disputed, the broker holds the funds until the parties agree, a court orders disbursement, or another lawful resolution occurs, rather than unilaterally deciding who receives the money.
Records and Inspection
Nebraska brokers must maintain records of trust-account activity and transactions available for Commission inspection. Accurate records support reconciliation and demonstrate that client money has not been commingled. A broker who cannot account for trust funds faces serious disciplinary exposure.