The Real Estate Licensing Board at its April meeting amended its Rules governing the handling of trust funds. These changes became effective June 1, 1981. The Board's action followed an April 1 rule-making hearing during which Members of the Board received comments from interested persons concerning the proposed changes.

Under Rule .0107(a) as amended brokers may now "hold" earnest money deposits and tenant security deposits until the offer to purchase or the lease has been accepted; these monies must then be deposited in a trust or escrow account not later than three banking days after acceptance of the offer, with the date of such acceptance being clearly set forth in the purchase or lease agreement.

All other trust funds (rents, settlement proceeds, etc.) must be deposited not later than three banking days following their receipt.

Rule .0107(b) as adopted, restates the requirement in the Real Estate License Law that before earnest money deposits, tenant s4~curit deposits, rents, etc. can be placed

an interest-bearing trust account, the broker must first obtain written permission from all persons who have a interest in the money; this written authorization must specify how the interest will be disbursed and who will receive it.

The new Rule also goes on t state that if a broker wishes to include the authorization in the offer t purchase, or the lease, or in some other transaction instrument, the broker must present the authorization in such a way as to distinguish it from other provisions of the instrument that is, the broker cannot "bury" the authorization in the instrument.

In addition to revising its trust account Rules and Regulations (See previous article), the Licensing Board has also adopted (effective June 1, 1981) a set of trust account "guidelines" to give brokers certain basic, essential information in the area of trust fund handling and recordkeeping.

Legal requirements governing trust funds and accounts. How to open and maintain a trust account. The conditions under which trust monies can be deposited into an interest-bearing account. Who should deposit and disburse trust monies? When should trust monies be deposited and disbursed? Recordkeeping and accounting requirements. These are some of the topics addressed in the "guidelines".

The "guidelines" also contain sample journal and Ledger forms with examples of how various types of deposits and withdrawals should be recorded in your books and records.

Beginning with this issue of the Real Estate Bulletin, the Trust Account Guidelines will be reprinted in their entirety. Or you may obtain a complete copy of the "guidelines" together with the current Real Estate License Law and Board Rules and Regulations by contacting the Board office or by sending in the Order Form found on page six of this Bulletin.