Washington Administrative Code › Title 308 - Licensing, Department of (See also Titles 36, 98 and 196) › Chapter 308-124E - Real estate-Trust account procedures › CLIENT FUNDS › Section 308-124E-110 - Administration of funds held in trust - Real estate and business opportunity transactions

Current through Register Vol. 24-14, July 15, 2024
The procedures in this section are applicable to funds
				  received by the firm in connection with real estate sales, business opportunity
				  transactions or options. These procedures are in addition to the requirements
				  of the general trust account procedures contained in WAC
				  308-124E-105.
(1) Bank accounts, deposit slips, checks and
				signature cards shall be designated as trust accounts in the firm or assumed
				name as licensed. Trust bank accounts for real estate sales or business
				opportunity transactions shall be interest bearing demand deposit accounts.
				These accounts shall be established as described in
				RCW
				18.85.285 and this section.
(a) The firm shall maintain a pooled
				interest-bearing trust account identified as housing trust fund account for
				deposit of trust funds which are ten thousand dollars or less.
Interest income from this account will be paid to the
				  department by the depository institution in accordance with
				  RCW
				  18.85.285(8) after deduction
				  of reasonable bank service charges and fees, which shall not include check
				  printing fees or fees for bookkeeping systems.
(b) The licensee shall disclose in writing to
				the party depositing more than ten thousand dollars that the party has an
				option between (b)(i) and (ii) of this subsection:
(i) All trust funds not required to be
				deposited in the account specified in (a) of this subsection shall be deposited
				in a separate interest-bearing trust account for the particular party or
				party's matter on which the interest will be paid to the party(ies);
				or
(ii) In the pooled
				interest-bearing account specified in (a) of this subsection if the parties to
				the transaction agree in writing.
(c)
(i) For
				accounts established as specified in (a) of this subsection, the designated
				broker will maintain an additional ledger card with the heading identified as
				"Housing trust account interest." As the monthly bank statements are received,
				indicating interest credited, the designated broker will post the amount to the
				pooled interest ledger card. When the bank statement indicates that the
				interest was paid to the state or bank fees were charged, the designated broker
				will debit the ledger card accordingly.
(ii) For accounts established as specified in
				(b)(i) of this subsection, the interest earned or bank fees charged will be
				posted to the individual ledger card.
(d) When the bank charges/fees exceed the
				interest earned, causing the balance to be less than trust account liability,
				the designated broker shall within one banking day after receipt of such
				notice, deposit funds from the firm's business account or other nontrust
				account to bring the trust account into balance with outstanding liability. The
				designated broker may be reimbursed by the party depositing the funds for these
				charges for accounts established as specified in (b)(i) of this subsection if
				the reimbursement is authorized in writing by the party depositing the funds.
				For accounts established under (a) of this subsection, the designated broker
				will absorb the excess bank charges/fees as a business expense.