North Dakota Administrative Code › Title 70 - Real Estate Commission › Article 70-02 - Real Estate Licensure › Chapter 70-02-01 - Licensing, Trust Accounts, and Complaints › Section 70-02-01-15 - Trust account requirements - Handling of funds - Records

Current through Supplement No. 393, July, 2024
1. All moneys belonging to others and
				accepted by the broker while acting in the capacity as a broker shall be
				deposited in a federally insured financial institution in this state in an
				account separate from money belonging to the broker. Clients' funds shall be
				retained in the depository until the transaction involved is consummated or
				terminated, at which time the broker shall account for the full amounts
				received.
a. Name of account. The name of such
				separate account shall be identified by the words "trust account" or "escrow
				account".
b. Notification. Each
				broker shall notify the commission of the name of the institution in which the
				trust account or accounts are maintained and also the name of the accounts on
				forms provided therefore. A new form shall be filed with the commission each
				time a broker changes the real estate trust account in any manner whatsoever,
				including change of depository, change of account number, change of business
				name, or change of method of doing business. The form shall be filed with the
				commission within ten days after the aforementioned change takes
				place.
c. Authorization. Each
				broker shall authorize the commission to examine and audit the trust account
				and shall complete an authorization form attesting to the trust account and
				consenting to the examination and audit of the account by a duly authorized
				representative of the commission.
d. Commingling prohibited. Each broker shall
				only deposit trust funds received on real estate transactions in the broker's
				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 five hundred dollars in the account from the broker's
				personal funds which sum shall be specifically identified and deposited to
				cover service charges relating to the trust account.
e. Number of accounts. A broker may maintain
				more than one trust account provided the commission is advised of the
				account.
f. Time of deposit. Each
				broker shall deposit all real estate trust money received by the broker or the
				broker's salesperson in the trust account within twenty-four hours of receipt
				of the money by the broker or the salesperson unless otherwise provided in the
				purchase contract. In the event the trust money is received on a day prior to a
				holiday or other day the depository is closed, the money shall then be
				deposited on the next business day of the depository. If the trust money is
				wired by the buyer to either the broker's trust account or a nonbroker third
				party, the broker shall maintain in the broker's office a complete record of
				all moneys transferred, including the initial contact request for the wire from
				the buyer to their financial institution, and confirmation of completion of the
				transfer. If earnest money is mailed by the buyer to the broker or the
				nonbroker third party, the envelope containing the postmark must be retained by
				the broker to establish the date the money was sent.
g. Responsibility. When a broker is
				registered in the office of the real estate commission as in the employ of
				another broker, the responsibility for the maintenance of a separate account
				shall be the responsibility of the employing broker.
h. Noninterest bearing accounts. All trust
				accounts must be noninterest bearing.