Recordkeeping and Trust Accounts
Handling other people's money and keeping accurate records are core responsibilities of a Colorado broker. This chapter explains trust account rules, the prohibition on commingling, and record retention requirements. Following these rules protects consumer funds and supports Commission oversight.
Trust Accounts and Commingling
Money belonging to others, such as earnest money and security deposits, must be held in a separate trust or escrow account. Brokers must not commingle these funds with personal or business operating funds. Funds must be deposited promptly and disbursed only as authorized by the parties or the contract. Proper trust accounting prevents misuse and protects consumers.
Recordkeeping and Retention
Brokers must maintain complete and accurate records of transactions and trust account activity. Commission rules require retaining records for a set period, commonly four years, so they are available for audit. Good records document deposits, disbursements, and the details of each transaction. Failure to keep required records or reconcile accounts can lead to discipline.