§ 543B.46 — Trust accounts

Iowa § 543B.46

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 543B: REAL ESTATE BROKERS AND SALESPERSONS

Text

1. Eachrealestatebrokerwhoisinthepracticeofdepositingfundsinatrustaccountshall
maintain a common trust account in a federally insured depository institution for the deposit
of all down payments, earnest money deposits, or other trust funds received by the broker or
the broker’s salespersons on behalf of the broker’s principal, except that a broker acting as a
19 REAL ESTATE BROKERS AND SALESPERSONS, §543B.47
salespersonshalldepositthesefundsinthecommontrustaccountofthebrokerforwhomthe
broker acts as salesperson. The account shall be an interest-bearing account. The interest on
the account shall be transferred quarterly to the treasurer of state and transferred to the Iowa
finance authority for deposit in the housing trust fund established in section 16.181 unless
there is a written agreement between the buyer and seller to the contrary. The broker shall
notbenefitfrominterestreceivedonfundsofothersinthebroker’spossession. Abrokerwho
is not in the practice of depositing funds in a trust account shall not be required to maintain
a common trust account pursuant to this section.
2. Each broker required to maintain a trust account pursuant to this section shall notify
therealestatecommissionofthenameofthefederallyinsureddepositoryinstitutioninwhich
a trust account is maintained and also the name of the account on forms provided therefor.
3. Eachbrokerrequiredtomaintainatrustaccountpursuanttothissectionshallauthorize
the real estate commission to examine each trust account and shall obtain the certification
of the federally insured depository institution attesting to each trust account and consenting
to the examination and audit of each account by a duly authorized representative of the
commission. The certification and consent shall be furnished on forms prescribed by the
commission. This subsection does not apply to an individual farm account maintained in the
name of the owner or owners for the purpose of conducting ongoing farm business whether
it is conducted by the farm owner or by an agent or farm manager when the account is part
of a farm management agreement between the owner and agent or manager. This subsection
also does not apply to an individual property management account maintained in the name of
the owner or owners for the purpose of conducting ongoing property management whether
it is conducted by the property owner or by an agent or manager when the account is part of
a property management agreement between the owner and agent or manager.
4. Each broker required to maintain a trust account pursuant to this section shall only
deposit trust funds as directed by the principal of a transaction constituting dealing in real
estate as described in section 543B.6 in the common trust account and shall not commingle
the broker’s personal funds or other funds in the trust account with the exception that a
broker may deposit and keep a sum not to exceed one thousand dollars in the account from
the broker’s personal funds, which sum shall be specifically identified and deposited to cover
bank service charges relating to the trust account.
5. Abrokermaymaintainmorethanonetrustaccountprovidedthecommissionisadvised
of said account as specified in subsections 2 and 3 above.
6. The commission shall verify on a test basis, a random sampling of the brokers,
corporations, professional corporations, professional limited liability companies, and
partnerships for their trust account compliance. The commission may upon reasonable
cause, or as a part of or after an investigation, request or order a special report.
7. The examination of a trust account shall be conducted by the commission or the
commission’s authorized representative.
8. The commission shall adopt rules to ensure implementation of this section.

Legislative History

[C71, 73, 75, 77, 79, 81, §117.46; 81 Acts, ch 54, §23; 82 Acts, ch 1067, §1]