Trust Accounts
Handling client money is its own content block on the Wisconsin broker exam. This chapter covers depositing, segregating, and disbursing trust funds under Chapter 452 and REEB rules.
Depositing and Segregating Funds
A Wisconsin broker who holds earnest money must deposit it into the firm's trust account and keep it separate from business and personal funds. Commingling trust money with the firm's operating account is prohibited and is a common basis for discipline.
Authorized Disbursement
Trust funds may be disbursed only when the parties are entitled to them under the contract or an authorization, and each disbursement must be documented. Releasing trust money early or to the wrong party violates the rules and harms consumers.
Recordkeeping
Brokers must maintain trust-account records that support a full accounting of client funds and be prepared for review by the REEB. Accurate records and reconciliations protect both consumers and the broker, and the broker is responsible for the account's integrity.