Wyoming Administrative Code › Agency 018 - Real Estate Commission › Sub-Agency 0002 - Real Estate Commission › Chapter 5 - BROKERS' TRUST OR ESCROW ACCOUNTS › Section 5-1 - Brokers' trust or escrow accounts

Current through July 13, 2024
The following rules apply to trust or escrow accounts held by
				  licensed Responsible Brokers.
(a) All
				money belonging to others accepted by the Responsible Broker shall be deposited
				with a funds holder or in a bank, financial institution or other recognized
				depository in this state in a trust or escrow account separate from personal or
				business money belonging to the Responsible Broker. A banking trust account may
				be any type of checking, demand, passbook, or statement account insured by an
				agency of the United States government. The name of each trust account shall be
				identified by the word "trust" or "escrow". The account shall be maintained in
				the name of the Responsible Broker.
(b) Money belonging to others which is
				received by the Responsible Broker or licensees or employees acting on his
				behalf includes but is not limited to money received in connection with
				property management contracts; rent or lease contracts; advance fee contracts;
				or money belonging to others received for future investment or other
				purposes.
(c) If the Responsible
				Broker does business as a real estate company, trust or escrow accounts shall
				be maintained in the name of the Responsible Broker acting for the real estate
				company and in the name of the real estate company. The name of the Responsible
				Broker is to be followed by the words "Responsible Broker".
(d) Each account heading shall include a
				label identifying the purpose/type of the account, i.e. "sales trust,"
				"security deposit escrow," "property management trust."
(e) Unless otherwise permitted by other
				subsections of this rule, all money belonging to others shall be deposited
				according to the purpose of the transaction in separate types of escrow
				accounts. For example, sales escrow deposits separated from property management
				deposits separated form security deposits as follows:
(i) Example:
Line 1 - XYZ Realty
Line 2 - John Doe, Responsible Broker
Line 3 - Meadows Homeowners' Association Escrow
				  Account
(ii) The Responsible
				Broker shall be able to withdraw money from a trust or escrow account without
				the benefit of a cosigner. Other authorized signatures of licensed or
				unlicensed people may also appear on the account.
(iii) Money belonging to others, when
				accepted by a Responsible Broker or funds holder, shall not be invested in any
				type of account, security, or certificate of deposit which has a fixed term for
				maturity unless there is written consent obtained by the Responsible Broker of
				all parties to the transaction.
(iv) Money held in a trust or escrow account
				which is due and payable to the Responsible Broker shall be withdrawn promptly.
				Monies earned by licensees affiliated with a Responsible Broker may not be paid
				directly from the Responsible Broker's trust or escrow account.
(v) All money belonging to others in the form
				of cash, check received shall be deposited directly into the listing
				Responsible Broker's real estate company trust account or with the Responsible
				Broker's real estate company funds holder by the listing Responsible Broker per
				W.S.
				33-28-122(a)(i), not later
				than the first banking day after receipt unless all persons having an interest
				in the funds have agreed otherwise in writing.
(vi) When trust funds are held by a funds
				holder, the Responsible Broker shall obtain a receipt showing the date and the
				amount of the funds transferred to the funds holder. The Responsible Broker,
				for each funds holder account maintained, shall also maintain a recordkeeping
				system in his place of business, consisting of at least the following:
(A) Date Received/Paid,
(B) Check number,
(C) Amount,
(D) Buyer,
(E) Seller,
(F) Escrow Agent,
(G) Date Delivered,
(H) Description of the real estate,
and
(I)
				Disposition of Transaction.
(vii) The Responsible Broker, for all money
				belonging to others, shall also maintain a recordkeeping system for every real
				estate company and/or branch location consisting of at least the following:
(A) A journal shall show the chronological
				sequence in which funds are received and disbursed. For funds received, the
				journal shall include the date, the name of the party who is giving the money,
				the name of the principal, address or description of the real estate, the
				amount. For disbursements, the journal shall also include the date, check
				number, amount, payee, principal, and the address or description of the real
				estate. The journal shall include a current running balance.
(B) A transaction ledger shall show the
				receipts and disbursements as they affect a particular transaction between
				buyer and seller or landlord and tenant, etc. The transaction ledger shall
				include the names of both parties to the transaction, the dates and amounts
				received, and the address and description of the real estate. When funds are
				disbursed, the date, payee, check number, and amount shall be shown.
(C) The Responsible Broker shall reconcile
				trust or escrow account journals and ledger liabilities monthly. The bank
				reconciliation shall prove agreement on the date of reconciliation by (1) the
				cash balance showing in the account journal; (2) the sum of the cash balances
				for all ledgers; and (3) the corresponding bank account balance. This worksheet
				shall be maintained in hard copy or electronic form for later inspection and
				list each beneficiary's ledger balance on the date of reconciliation. The
				Responsible Broker is not required to reconcile any trust or escrow account
				when no banking activity has occurred.
(D) Separate trust account journals shall be
				reconciled with the related bank statement monthly.