Connecticut Brokerage Practice and Trust Accounts
This chapter covers Connecticut's day-to-day practice rules: escrow and trust accounts, supervision and advertising, and the broker's responsibility for client funds.
Escrow and Trust Accounts
The supervising broker is responsible for the brokerage's escrow or trust account. Client funds such as deposits must be placed in that account, kept separate from the broker's own funds, and properly accounted for. Commingling or converting client funds violates Connecticut license law and can result in discipline.
Supervision and Advertising
Connecticut advertising must be conducted under the supervising broker and must not be false or misleading. A salesperson advertises in the name of the broker's firm. Because the broker supervises the salesperson, violations by the salesperson can also expose the broker to discipline.
Handling Client Funds and Records
Licensees must promptly deliver client funds they receive to the supervising broker for deposit into the trust account, and the brokerage must maintain accurate transaction and account records. These records must be available to the Department of Consumer Protection on request.